Research On The Impact Of Goodwill Impairment Of KYLAND Technology’s Multiple Mergers And Acquisitions

As the pillar of China’s enterprise development,listed companies play an important role in China’s economic development,mergers and acquisitions is the "fast track" to achieve listing,most of the familiar enterprises in the world have taken the way of mergers and acquisitions,on the one hand,it can be completed good performance,attracting more consumers to occupy the market share,on the other hand,it also enhances the core competitiveness of the enterprise.The rapid development of the national economy has not only put more demands on the communication industry but also brought many opportunities for it,so in this context,communication companies opened the road of M&A and restructuring.However,the high premium of M&A also brings huge amount of goodwill,which can lead to corporate crisis if the goodwill impairment problem is not dealt timely.This paper mainly adopts literature research method,case study method,event study method and comparative analysis method to study the issues related to goodwill impairment with the case of multiple mergers and acquisitions of KYLAND Technology.Firstly,the overall M&A situation and goodwill impairment in the communication industry is analyzed;then the goodwill impairment of multiple M&As of KYLAND Technology is introduced,mainly including the company introduction,the current situation of multiple M&As and goodwill formation of KYLAND Technology from 2017 to 2020,goodwill impairment and information disclosure.Finally,this paper examines and analyzes the economic consequences of the impairment of goodwill from the accounting point of view of KYLAND Technology’s multiple mergers and acquisitions,and examines in depth the causes of goodwill impairment arising from KYLAND Technology.The research results show that the huge goodwill impairment accrued by KYLAND Technology in 2019 had a serious negative impact on the company’s sustainable and stable development.Initiatives such as improving goodwill information disclosure,reasonably assessing the value of the acquired party and strengthening internal and external supervision are proposed for the problems found in this case.It is hoped that KYLAND Technology will reasonably avoid the risks associated with goodwill impairment on this basis and promote the healthy development of the company.In this way to bring reference and adoption to more communication enterprises,it will help companies in the industry to reasonably avoid the risk of goodwill impairment,thus promoting the stable development of the industry.