A Study On The Impairment Of Zeus Entertainment Corporation Goodwill

Under the new normal of economy,M & A has become an important way for enterprises to expand industrial distribution and seek greater development.With the continuous expansion of M & A scale,the book goodwill of listed companies has increased dramatically,and the impairment of goodwill impairment has become more and more serious.Since the beginning of 2019,A-share market has experienced the most severe performance explosion in the history of performance loss.Hundreds of Ashare listed companies have been exposed with performance loss of more than 100 million yuan,the key reason for which is the substantial provision of impairment of goodwill.Large impairment of goodwill has infringed on the interests of small and medium investors,caused a huge impact on enterprises and the market,and caused widespread concern in all walks of life.Therefore,this paper focuses on the problem of goodwill impairment.Through specific cases,this paper analyzes the problems in the process of goodwill formation and goodwill impairment,explores the causes of goodwill impairment,and summarizes the impact.Based on the theoretical results of goodwill nature,initial measurement and follow-up measurement,this paper analyzes the formation and follow-up impairment of goodwill in M & A of Fantasy Yueyou company,which was acquired by 9 companies in succession in three years after listing and possessed the characteristics of radical M& A.When combing the formation of M & a goodwill,from the two perspectives of the motivation and the price of M & A,the paper finds that the M & A is a radical strategic plan of the company in order to improve business performance,expand influence and enhance market price,but there are some irrationalities in the aspects of income prediction,target company valuation,gambling agreement and recognition of goodwill assets As a result,the price of M & A is too high,so the goodwill generated is also on the high side.In the analysis of goodwill impairment,it is found that the decline of business performance and the defects of business management are the important reasons for Zeus Entertainment Company to withdraw the impairment of goodwill from Fantasy Yueyou company.There are some problems in the process of impairment,such as the improper test of goodwill impairment and the unreasonable one-time withdrawal of goodwill impairment.Based on the above case analysis,this paper also summarizes the impact of goodwill impairment on enterprises,which impacts the operating performance of Zeus Entertainment company,damages the interests of small and medium shareholders,and makes the future development of the company more difficult.In addition,this paper puts forward suggestions from three aspects: M & a strategy,M & a plan,initial measurement of goodwill and subsequent accounting treatment,including suggestions on the company level,as well as suggestions on the improvement of accounting standards,hoping that the impairment of goodwill can attract the attention of other listed companies and help them effectively reduce risks.