Research On The Economic Consequences Of Recognition And Impairment Of Beijing Cultural Goodwill

With the continuous prosperity of China’s economy,more and more enterprises tend to adopt M & A to achieve the goal of scale expansion,transformation and upgrading.Under the macro stimulation of policy dividends,due to the characteristics of asset light operation,the film and television industry has frequent M & A cases with high valuation and high premium in the short term,resulting in huge goodwill.In 2019,the film and television industry ushered in a wave of "thunder explosion" of goodwill,and the massive impairment of goodwill caused attention and discussion from all walks of life.Based on the above macro background,based on the relevant theories of enterprise M & A and goodwill,and taking the economic activities of Beijing Culture Company’s acquisition of Century Partner Company and Xinghe Culture Company as the research object,this paper analyzes the influencing factors of goodwill recognition and impairment,and focuses on the relevant economic consequences of goodwill recognition and impairment to enterprises.The significance of this paper is to make a quantitative analysis of the goodwill of the film and television industry through specific cases,reflect the economic consequences of goodwill from the perspective of accounting,and further verify the relevant theories.The systematic study found that the influencing factors of huge goodwill caused by high premium acquisition mainly include the influence of macro policy,the preference of company managers,the stimulation of performance commitment of the acquiree and the influence of asset evaluation model.At the same time,the occurrence of high premium acquisition may be related to the motivation of artificial improper intervention.In terms of the economic consequences of goodwill recognition,under the influence of goodwill recognition,it promotes the synergy of the company and enhances its operating capacity.Goodwill belongs to the company’s non current assets.After the recognition of goodwill,the solvency,especially the long-term solvency,will be enhanced.Goodwill recognition sends a positive signal to the market and enhances the profitability of the company.The influencing factors of goodwill impairment mainly include the impact of macro policies,the limitations of accounting treatment methods,the lack of core competitiveness of the company and the shrinkage of business scale.At the same time,the company may take the means of goodwill impairment to cover up the "performance injection" in the past.The impairment of goodwill reflects the adverse consequences of the impairment of goodwill in the future market.Goodwill belongs to the company’s non current assets.After the impairment of goodwill,the solvency,especially the long-term solvency,decreases.Goodwill impairment sends a negative signal to the market and the company’s profitability decreases.According to the above research,this paper puts forward the following suggestions from the five dimensions of regulatory department management,asset evaluation model selection,enterprise acquisition decision-making,goodwill impairment prevention and investment decision-making of small and medium-sized investors: regulatory departments must timely reflect on the shortcomings of policies to avoid the lag of regulatory policies;The accounting standard setting department shall further formulate relevant specifications for goodwill impairment test;Asset appraisal institutions must pay more attention to the use of uncertain risk consideration variables and enhance the scientificity and preciseness of the appraisal results;Listed companies must carefully study and judge the acquisition decision,strengthen the management of goodwill assets after acquisition,and compact the information disclosure and review of goodwill assets;Small and medium-sized investors must study and judge the feasibility of investment decisions,especially long-term investment decisions,based on more comprehensive indicators such as the development of their main business.