Analysis Of Goodwill Impairment And Earnings Management In Media Industry ——Take Wanda Films For Example

With the continuous development of China's economy and the increasing maturity of the capital market,many enterprises are expanding their scale at the same time,mergers and acquisitions among enterprises are also constantly carried out,the goodwill impairment behavior of China's listed companies is more and more common,large goodwill impairment occurs from time to time.Some of the goodwill impairment is due to the deterioration of business conditions in accordance with accounting standards,but some of the goodwill impairment is suspected to be motivated by earnings management.Current our country market economy in an important transition period,the market regulators began to increasingly attach importance to enterprise merger and acquisition goodwill,and goodwill complex influence on the enterprise mechanism,goodwill impairment provision about the stand or fall of a company's performance or not,will be a great impact on investors,once mishandled,cause a lot of loss and serious negative impact.It is of great significance for the healthy development of China's market economy that how to standardize the reasonable provision of goodwill impairment,reduce the space for earnings management by means of this method,and then promote the published financial statements to provide more high-quality financial information for the market and investors.In this paper,the normative research method and case analysis method are used to clarify the related concepts of goodwill,goodwill impairment and earnings management,and then the mechanism relationship between goodwill impairment and earnings management is analyzed in detail.Taking Wanda film,a representative film in China's emerging media industry,as an example,this paper first expounds the formation of goodwill impairment and starts from its root problem.Secondly,analyze and summarize wanda film goodwill impairment situation.Starting from the disclosure of the company's annual reports in recent years,financial index evaluation and specific events and activities,this paper studies the existence and motivation of earnings management by means of goodwill impairment after wanda Film's acquisition.The study found that Wanda Film had an obvious motive to manipulate the financial statements by withdrawing a large goodwill impairment in 2019,which was a typical earnings management behavior,carrying out a "financial bath" and providing space for profits in future financial statements.In addition,through the study,wanda film in the process of merger and acquisition of unreasonable consideration,excessive competition driven by capital and other problems,which foiled the provision of goodwill impairment.The contributions of this paper are as follows: first,expand the research idea of the relationship between goodwill impairment and earnings management,and identify the motivation of using goodwill impairment for earnings management by analyzing the existence of earnings management and relevant financial data;Second,enhance the understanding of the relationship between goodwill impairment and earnings management,analyze the motivation and mechanism of goodwill impairment affecting earnings management in detail;Thirdly,it puts forward countermeasures to the behavior of earnings management by means of goodwill impairment,and provides reference for preventing the use of goodwill impairment for earnings management.