Research Of Goodwill And Its Impairment Of Listed Companies

In recent years,China’s economy has developed rapidly,the reform of the cultural system has been further promoted,and the Internet game industry has ushered in a golden period of development.A batch of listed companies have expanded their enterprise scale,reduced transaction costs,obtained synergy effect and improved their competitiveness through mergers and acquisitions.With the expansion of the scale of mergers and acquisitions,the financial statements have also formed a huge amount of goodwill.In 2018,the game industry was affected by policies and regulations.Many enterprises could not fulfill their performance commitments due to the performance decline,so they had to prepare a large number of goodwill impairment provisions,which brought adverse effects to the development of enterprises and exposed many defects of the existing goodwill impairment test method.This paper selects a series of mergers and acquisitions of game industry Zeus entertainment from 2015 to 2018 as cases to study the goodwill impairment problem of listed companies after mergers and acquisitions,and provides Suggestions for the measurement of listed companies’ goodwill in mergers and acquisitions,which is conducive to improving China’s accounting standards for enterprises and improving the quality of accounting information.Introduces the related situation of Chinese listed company merger and acquisition and goodwill,under the guidance of a series of theory on the gods entertainment of case analysis,analyses the gods entertainment huge goodwill formation process,reason,the process of goodwill,the cause of the Zeus entertainment goodwill is: takeover premium is too high for goodwill the stage;As a result of the tightening policy,the target of M&A cannot fulfill the performance commitment.Suggestions are given from the aspects of the way of M&A,performance commitment,payment method and follow-up of M&A.After further study,it is found that there are some problems in the current test method of goodwill impairment in the practical application.In view of the problems,some suggestions are put forward.Finally,the test method of goodwill impairment and the amortization method are compared and analyzed.It is concluded that the share price calculated by the goodwill amortization method is closer to the real share price and can better reflect the real value of the enterprise.First goodwill impairment test method in our country there are some defects,such as there is no uniform standard on the cognizance of the asset group,is difficult to determine the recoverable amount,difficult to operate,to the timing of the goodwill impairment test regulation is not rigorous,disclosure of goodwill impairment test information is not detailed,easy to become the enterprise surplus management method.In practice,the method of "goodwill impairment test + amortization" can be used for subsequent measurement.Detailed disclosure of the relevant details of the impairment test,disclosure of the extent to which the impairment of goodwill on the consolidated profit,after the completion of performance commitments should also be concerned about the business.Through case analysis,enterprises can understand the reasons for the formation of huge goodwill,avoid relevant traps in the actual M&A process,improve the success rate of M&A,and reduce the possibility of goodwill impairment.