| With the development of economy,the regulatory authorities have issued a number of preferential rules for M&A and relaxed the M&A limits.The M&A market has entered a prosperous period.Therefore,many enterprises choose mergers and acquisitions to adapt to the current market development trend and improve their core competitiveness.However,the rapid expansion of the scale of these enterprises through mergers and acquisitions leads to a substantial increase in goodwill,and the failure to timely account for the impairment of goodwill in mergers and acquisitions leads to a series of problems in the impairment of goodwill,thus bringing many adverse effects to the enterprises and even the whole industry.In recent years,many enterprises tend to make certain performance promises for their own interests when mergers and acquisitions,but they did not fulfill them in the end.Although mergers and acquisitions deliver good news to the outside world,they also make the huge goodwill become a huge hidden danger for the development of listed companies.At present,our country’s merger and acquisition market is still clouded in the haze of impairment of goodwill.The huge amount of impairment of goodwill has become a problem demanding prompt solution of listed companies in the market.Based on the above background,this paper firstly carefully studies the research status and theoretical concepts related to enterprise mergers and acquisitions,continuous mergers and acquisitions,goodwill and goodwill impairment,and makes specific discussion and analysis in this paper.Then,it leads to the case company CSG,and chooses Yonggan Electromechanical,Guanzhi Automation,Huaxiao Precision and Qiancheng Machinery,the four subsidiaries of CSG,which set up and withdraw goodwill impairment in 2019,as the case study object,and then makes a detailed,systematic and comprehensive analysis on the specific contents of CSG goodwill impairment case.First of all,the specific situation of the two parties of the four mergers and acquisitions that caused the huge goodwill impairment of CSG and the specific consideration and payment method of the four mergers and acquisitions were introduced,and the specific reasons why CSG chose the continuous mergers and acquisitions were analyzed,as well as the goodwill impairment situation of CSG,namely the initial recognition and the actual withdrawal of goodwill.Then,it analyzes four problems of CSG goodwill impairment,including too high valuation price of merger and acquisition,not timely accounting for goodwill impairment,not timely disclosure of information related to goodwill impairment and unreasonable amount of accounting for goodwill impairment,and carries out specific analysis from these four aspects.The next chapter is the analysis of the causes and economic consequences of the goodwill impairment of CSG.Its causes mainly include the adoption of high premium in mergers and acquisitions,the use of goodwill impairment to manipulate net profit and poor synergy effect of enterprises.From the perspective of the economic consequences brought by CSG goodwill impairment,the negative impact on financial performance,resulting in CSG smart stock price decline and not conducive to the long-term development of enterprises are discussed.Finally,suggestions on the goodwill impairment of CSG continuous mergers and acquisitions are put forward from five aspects,namely,reasonable assessment of enterprise value,standardized accounting and drawing of goodwill impairment procedures,improvement of business goodwill impairment information disclosure,reasonable standardization of the subsequent measurement of goodwill impairment and regulators should strengthen monitoring.This paper selects a specific case of goodwill impairment of CSG continuous mergers and acquisitions,aiming to analyze the causes of goodwill impairment and its economic consequences from various aspects.There are still a large number of incidents of goodwill impairment in our country.It is hoped that market participants can pay attention to the cause,rationality and economic consequence of the impairment of goodwill so as to avoid great uncontrollable risks as the impairment of goodwill is too serious.Meanwhile,we hope to bring some inspirations to the impairment of goodwill and promote the healthy and rapid development of our country’s capital market. |
