Translation Practice Report Of "Life Gets Better Dramatically: The Law Of "dialogue In The Brain"" (excerpt

Actuated by national policy and the increasing development demands of companies,Chinese film and television industry has set off a wave of mergers and acquisitions.Due to the asset-light characteristics of film and television enterprises,they often need to pay a High premium merger,and at the same time generate a high goodwill.Since 2019,there have been continual "thunderstorms" of corporate goodwill.Huge goodwill impairment not only brings a series of risks to enterprises,but also seriously disturbs the capital market.Therefore,the research on goodwill impairment risk is of great significance.This paper selects Wanda Film Holding,a film and television enterprise,as the case study object,analyzes and studies the financial and non-financial goodwill impairment risks brought to enterprise by its two consecutive goodwill impairment provisions after its acquisition of Mtime,and studies the specific causes of risks and countermeasures.This paper firstly introduces the process of Wanda Film Holding’s acquisition of Mtime and the impairment of goodwill.Then,it identifies and analyzes the financial risks and non-financial risks brought by goodwill impairment to Wanda Film Holding Co.,Ltd..In terms of financial risk,combining with the financial statement method and analyzing the current situation of the enterprise’s financial ability,the risks of investment,financing,operation and sustainable growth brought by goodwill impairment are identified.In the non-financial risk,from the strategic positioning,strategic indicators and business strategic decision risk;The AR and CAR after the two goodwill impairment announcements were calculated by regression analysis to identify the market risk.Based on the goodwill impairment risk identified and analyzed above,this paper explores the specific causes of risk.Macro factors include inadequate merger coordination and obvious influence by macro environment;micro factors include overvaluation of the acquired party,poor profitability of the acquired party and delayed recognition of goodwill impairment.Finally,suggestions are put forward for Wanda Film Holding to prevent the risk of goodwill impairment in the future,including reasonable assessment of the value of the acquired party,focus on the operation ability of the target enterprise,improve the resource integration ability after the merger,and provide valuable references for other listed enterprises in the film and television industry,warning enterprises to conduct goodwill impairment test in time,and improve the disclosure requirements of goodwill impairment information in the industry.This paper has enriched the cases related to the study of goodwill impairment risk in mergers and acquisitions,which is helpful for film and television enterprises to improve their attention to and prevention ability of goodwill impairment risk.