Research On The Accounting Problems Of Goodwill In The Merger And Acquisition Of Cultural And Entertainment Enterprises

In the past few years,goodwill is one of the hottest topics in the securities market.In November 2018,China Securities Regulatory Commission(CSRC)issued “Accounting supervision risk warning No.8-goodwill impairment”;in January 2019,the Accounting Standards Committee of the Ministry of Finance issued “Explanation on the opinions of the Advisory Committee on the accounting treatment of goodwill”;in January 2020,China Association for injection(CICPA)issued “Notice on auditing the annual report of Listed Companies in 2019”,which ranked goodwill as the third highest risk matters.In February2021,China Securities Regulatory Commission(CSRC)reported the inspection and treatment of audit and evaluation institutions in 2020,in which improper evaluation method of goodwill impairment was taken as a key issue.Several major regulatory departments have issued prompt documents on goodwill for many times,so the accounting theory and practice circles should pay more attention to the research of goodwill.Due to the phenomenon of "high value and high goodwill" in M & A of listed cultural and entertainment companies,this paper selects T entertainment company listed in Shenzhen Stock Exchange as the research object.First of all,at the initial recognition level,this paper takes two premium M & A transactions of T entertainment company as the starting point,and uses the theory of procyclical effect and management overconfidence to explain that the buyer overestimates the enterprise value of the acquiree,and the fair value of the acquiree’s intangible assets is not fully recognized,which leads to T entertainment company’s initial recognition of a huge amount of The goodwill assets that don’t conform to the attribute of excess return pave the way for the thunder event of goodwill impairment;Secondly,on the measurement level,this paper uses the modified Jones model to prove T entertainment company’s earnings management behavior by using goodwill impairment,and the existence of "insider control" also provides opportunities for T entertainment company’s earnings management behavior;Thirdly,at the reporting level,T entertainment did not fully disclose all the important information related to M & A goodwill,and failed to help the users of the financial statements fully understand the goodwill assets owned by the enterprise;Finally,through the data analysis,it is found that the huge goodwill impairment of T entertainment company has caused the accounting information distortion,stock market panic and other adverse phenomena.At the same time,it also has a serious impact on the financial performance and stock price of T entertainment company.Based on a comprehensive analysis of the goodwill case of T entertainment company,this paper puts forward some suggestions on the merger and acquisition transaction,goodwill confirmation and goodwill information disclosure of listed cultural entertainment companies.At the same time,this paper also puts forward some suggestions on the supervision of M & A transactions and goodwill accounting treatment of listed cultural and entertainment companies.