Research On The Impairment Of High Goodwill In Cultural Media Industry

Goodwill is the product of corporate mergers and acquisitions.It essentially represents the company's future excess profitability.Its book value is the difference between the cost of mergers and acquisitions and the fair value of the acquired party's identifiable net assets.This also determines the company's business Reputation value and M&A premium rate are closely related.With the country's relaxation of the approval policy for mergers and acquisitions and restructuring transactions,the scale of my country's A-share goodwill has grown along with the scale of mergers and acquisitions,and has gradually shown a trend of bubbles.Due to the needs of the industry's strategic development and the characteristics of industries such as assetlightness and the scarcity of "star IP",the cultural media industry has seen a wave of high-premium mergers and acquisitions,and high-value,high-premium,and highperformance commitments have become the cultural media industry.Standard for mergers and acquisitions.The hidden danger of this M&A model is the high risk of impairment of goodwill.In 2018,my country's accounting standards stipulate that companies should conduct a goodwill impairment test at least once at the end of each year and disclose relevant details,and adjust them according to the results of the impairment test.The book value of goodwill,and once the impairment of goodwill is accrued,it cannot be reversed.This regulation has led to a substantial reduction in the scale of goodwill in the cultural media industry,and the scale of net profits has been severely affected.Investors have lost confidence in the industry,which to some extent hinders the further development of the industry.However,there is still a huge amount of goodwill of 61.743 billion yuan in the industry or facing impairment,and the sustainable development of the company will inevitably be accompanied by subsequent mergers and acquisitions and the formation of goodwill.Provide optimization suggestions on the handling of goodwill issues in mergers and acquisitions,and also provide relevant regulatory authorities with targeted regulatory opinions for reference.The writing of this article will focus on the impairment of goodwill in the cultural media industry,try to combine the characteristics of the industry,select H.brothers as a typical case,and analyze in detail the details of H.brothers' acquisition of the three subsidiaries of Yinhan Technology,Dongyang Haohan and Dongyang Meila.Discuss the source of its high goodwill and the formation of high goodwill impairment,analyze the reasons for its high goodwill impairment,and explain the economic consequences caused by the high goodwill impairment,thereby affecting cultural media companies Put forward relevant improvement suggestions,put forward several regulatory suggestions to the regulatory authorities,and finally sort out the above ideas,and look forward to the development of the cultural media industry,especially H.brothers.Through research and analysis,the following conclusions have been obtained:First,the huge amount of goodwill is mainly caused by improper valuation methods,high performance commitments,avoidance of delisting risks,smooth performance,industry characteristics,and incentives for benefit transmission;second,the huge reduction in goodwill The value will have an adverse effect on the financial,operation and stock price of the enterprise;the third is to put forward countermeasures and suggestions on the problems caused by the impairment of goodwill and its goodwill from the perspectives of the enterprise and the regulatory authorities.