Research On The Problem Of Goodwill Impairment In Merger And Acquisition Of Shuzhi Technology

Since 2012,in order to achieve strategic transformation of the company or occupy a larger market share,enterprises often take the way of mergers and acquisitions to achieve the purpose.In mergers and acquisitions(M&A)activities,mergers and acquisitions with high premium frequently occur,and the sudden provision of large goodwill impairment damages the interests of minority shareholders.This paper aims to provide reasonable suggestions for regulatory authorities and listed companies to improve the recognition,measurement and disclosure of goodwill by studying the impairment of goodwill during the acquisition of Beijing Digital Knowledge Technology Co.,LTD.(hereinafter referred to as "Shuzhi Technology").The problem of goodwill impairment after the merger and acquisition of Shuzhi Technology has aroused great concern.In order to further explore the questions about the motives of enterprise merger and acquisition and risk analysis,the author uses methods such as literature,case study and theoretical analysis to conduct in-depth discussion on the one-time withdrawal of large goodwill impairment of Shuzhi Technology.First,This paper expounds the research background and significance,research methods and content,theoretical basis and literature review,laying a foundation for the writing of the full text.Then,it expounds the background and process of the formation of huge goodwill,the initial measurement and provision of goodwill impairment.Thirdly,the reasons for the goodwill impairment of Shuzhi Technology are deeply explored.Finally,the case of goodwill impairment of Digital Technology is summarized and suggestions are put forward to provide necessary basis for the management of goodwill impairment of the company,the establishment of accounting standards,the supervision and analysis of listed companies by the government and capital market institutions,and accumulate a valuable experience for overseas MERGERS and acquisitions.Through the research of this paper,it is found that the early stage of Shuzhi Technology through a series of acquisitions formed a quite good synergistic effect,but also to Shuzhi Technology buried potential hidden trouble.In 2020,Shuzhi Technology lost nearly 8 billion yuan,mainly due to the impairment of goodwill as high as 6.1 billion yuan.Therefore,enterprises should start to prevent and control risks from the source,and pay attention to the changing trend of the industry,so as to take timely measures to minimize the risks brought by mergers and acquisitions.In addition,the regulatory authorities also need to improve the mechanism and standardize the performance mechanism of the gambling contract,so as to improve the management mode of listed companies on the structure of m&a.