Research On The Impairment Of Goodwill Under Merger And Reorganization Of Listed Companies

In recent years,with the change of economic environment and the guidance of national policies,China’s market economy has become more and more active,and enterprises are constantly pursuing diversified development directions in order to improve their market competitiveness.For this reason,the merger and acquisition activities among enterprises also become extremely fierce,whether from the number of mergers and acquisitions of enterprises or the amount of mergers and acquisitions show a trend of accelerating the rise.,of course,with the merger,acquisition and reorganization of all sorts of problems also gradually emerged,including mergers and acquisitions,there are many premium premiums M&A is always accompanied by a high reputation,some of them will have a large amount of goodwill impairment provision,so problems associated with goodwill research has become a hot topic in the theoretical research.By analyzing the case of high goodwill generated by Huayi brothers’ merger with Dongyang Meila and then making a large amount of impairment provision for goodwill,this paper reveals some problems existing in the accounting treatment of goodwill in merger and proposed corresponding improvement measures.This paper firstly adopts the literature research method,through reading the literature review related to the study of goodwill and the relevant accounting treatment standards,laying a theoretical foundation for the subsequent case study.Then,through the case study method,the in-depth analysis of the case of Huayi brothers found that in 2018,Huayi brothers achieved revenue of 3.891 billion yuan,down 1.40% year on year,with net profit loss of nearly 1.093 billion yuan,down231.97% year on year,while Huayi brothers set up goodwill impairment of about 970 million yuan,which was also the main reason for the performance loss of Huayi brothers.Aiming at this phenomenon,this article from the case study combing out the problems existing in the accounting treatment of goodwill,put forward by Huayi brothers film company in goodwill overvalued in initial stage,in the subsequent measurement link goodwill impairment provision deficiencies or provision for large one-time goodwill phenomenon,and puts forward solutions,such as a reasonable performance commitment,reasonable determination of the initial amount of goodwill as well as the mandatory information disclosure and so on.Through the analysis of the case,on the one hand,can be huge goodwill in the merger,acquisition and reorganization of listed companies to provide preventive measures against risk,on the other hand,through the discovery of the listed company’s goodwill there may be problems in the operation process,make the enterprise managers can better prevent goodwill brings negative impact on the company,at the same time also can standardize enterprise behavior,to reduce risk.