Research On The Subsequent Measurement Of The Consolidated Goodwill Of TONZE ELECTRIC CO

With my country’s economic development and supply-side structural reforms,large-scale enterprise transformation and upgrading,and a new wave of mergers and acquisitions and reorganizations,the scale of goodwill in the A-share market has increased significantly.In recent years,the initial confirmation of huge amounts of goodwill has begun to be released.In 2019,more than 800 listed companies withdrew goodwill impairment,which not only caused a sharp decline in corporate performance but also brought a huge blow to investor confidence.Regarding the issue of the impairment of huge amounts of goodwill,heated discussions have been held at home and abroad.It is considered to improve the current subsequent measurement method of goodwill to make it more truly reflect the changing law of goodwill value,improve the quality of financial information,and maintain the capital market stable.Based on this background,this article adopts literature research method,theoretical analysis method,case analysis method and comparative analysis method to research and analyze the subsequent measurement of consolidated goodwill.Based on the research status of the essence of goodwill and the subsequent measurement of goodwill at home and abroad,the concept definition and theory are defined from four aspects: the concept of combined goodwill and the measurement concept of combined goodwill,the basis of the subsequent measurement of combined goodwill,and the current subsequent measurement method of goodwill in my country Analysis provides the research basis of this article.Taking GUANGDONG TONZE ELECTRIC CO.,Ltd.as the research object,starting from the specific situation of the formation of Tonze Electric’s consolidated goodwill and subsequent measurement,it clarified the reasons for the substantial impairment of the consolidated goodwill and the problems existing in the subsequent measurement methods of the current consolidated goodwill.In order to alleviate this problem,this paper introduces the PAH impairment method,system amortization method,the parallel method of impairment test and system amortization method.Three methods are used to carry out the subsequent measurement of the consolidated goodwill of Tonze Electric,and compare and analyze the follow-up of different consolidated goodwill.The implementation cost of the measurement method and its impact on the quality of financial information and profitability of Tonze Electrical Appliances provide a certain reference for the improvement of the subsequent measurement method of my country’s goodwill in practice.The study found that the performance of Tonze Electric under the impairment test method is the most stable,and the impairment test method has a certain balancing effect on the performance of the company,but there is a possibility that the management may carry out earnings smoothing.The PAH impairment method proposes self-generated goodwill and can more timely reflect the impairment of consolidated goodwill.However,under this method,Tonze Electric’s net profit has become negative for three consecutive years,and the company’s performance pressure is relatively high,which is not conducive to capital preservation.Under the current economic development situation in my country,the introduction of the PAH impairment method needs to be carefully considered.The introduction of the amortization method may be more in line with the needs of my country’s current development.It can inhibit the initial confirmation of huge amounts of goodwill at the source,and the parallel amortization method and impairment test method can be based on the specific operating conditions of the enterprise,To adjust the subsequent goodwill impairment amount to more truly reflect the law of changes in the value of goodwill.For the improvement of the follow-up measurement method of goodwill,this article proposes to suspend the introduction of the PAH impairment method based on the purpose of M&A transactions and to suspend the introduction of the PAH impairment method;refine the current standards for the subsequent measurement method of goodwill,and clearly stipulate the time point of the impairment test.The division of asset groups and the discount rate;strengthen information disclosure and supervision,establish a system of accountability for merger goodwill.