Research On Goodwill Impairment Of Group X’s Acquisition Of Media H

With the rapid development of social economy and the increase of people’s spiritual needs,culture and entertainment industry has been gaining momentum in recent years.In order to integrate upstream and downstream resources and improve the business structure,many of the industry giants will achieve synergy effect through mergers and acquisitions of relevant enterprises.In addition,since 2017,the number of domestic acquisition cases has seen a significant increase,and many acquisitions,especially those of asset-light enterprises,have formed a huge amount of goodwill.The current accounting standards for enterprises in China require enterprises to carry out a goodwill impairment test within each fiscal year.Some enterprises count and draw a large amount of goodwill impairment for reasons such as unqualified performance commitment,insufficient synergy effect and earnings management,resulting in the "in crisis" phenomenon of huge goodwill impairment.Therefore,it is very necessary to study the causes and effects of the impairment of goodwill of enterprises,especially listed companies,in terms of preventing risks,reasonably evaluating the goodwill of mergers and acquisitions,protecting the rights and interests of investors and ensuring the good operation of the capital market.Based on this background,this paper,in view of the goodwill impairment phenomenon caused by listed companies merging with asset-light enterprises in the culture and entertainment industry,chooses Group X’s acquisition with Media H as a case study,to specifically explore the reasons and impacts of the goodwill impairment in the merger case.In this paper,the case study method is mainly used to carry out research on the impairment of goodwill in mergers and acquisitions.Firstly,the relevant literature on the study of goodwill and mergers and acquisitions at home and abroad is summarized,and the related concepts,theories and measurement methods of mergers and acquisitions and goodwill impairment are introduced to provide a theoretical basis for the subsequent specific case analysis.Secondly,this paper introduces the industry background and general situation of the two companies in the case,combs the motivation of both parties in the merger and acquisition,and expounds the merger process and the occurrence of goodwill impairment.Thirdly it analyzes the reasons of goodwill impairment after Group X’s acquisition with Media H from the aspects of acquisition valuation,performance commitment and earnings management.Finally,it analyzes the impact of goodwill impairment on Group X from financial and non-financial perspectives.By analyzing the causes and effects of the goodwill impairment after Group X’s acquisition with Media H,this paper comes to the conclusion that unreasonable mergers and acquisitions valuation,high performance commitment and the external environment will affect goodwill impairment brought about by the merger and acquisition.This paper is expected to give some enlightenment to other listed companies in rationally dealing with performance commitment,standardizing internal management and strengthening external supervision.