Case Study On The Identification And Evaluation Of Identifiable Intangible Assets Of Jingsheng Company Under M&A

If the acquisition is completed,the acquisition enterprise needs to amortize the merger cost paid in the assets and liabilities of the acquired target company respectively.The remaining part after amortization is goodwill.Further,this surplus must be combined with the impact of deferred tax and contingent liabilities.When the fair value of the liabilities of the acquired enterprise is determined,the scope and value of the identifiable intangible assets in its assets will directly affect the final identifiable net asset value.Therefore,goodwill and the fair value of intangible assets are like placing weights on both ends of the balance.The more weights are placed on the fair value of identifiable intangible assets,the less the amount of goodwill is recognized,and the accounting treatment methods of the two in subsequent years are also different.Based on this background,it is necessary for us to study the scope identification and value evaluation of identifiable intangible assets under M&A.Through combing the relevant literature and theories,this study is based on the current situation of the identification process and value evaluation methods of identifiable intangible assets involved in M&A in China,and combined with a specific case of Jingsheng company.Firstly,it finds and summarizes the problems in the identification stage of intangible assets,such as incomplete identification of intangible assets from the perspective of enterprise business process,failure to refine the provisions of accounting standards into identification indicators,and incomplete identification procedures of identifiable intangible assets.It is analyzed that the causes of these problems may be the long-term neglect of intangible assets management by the enterprise management,the consideration of post merger performance by the enterprise management,etc.Secondly,in the stage of intangible assets value evaluation,summarize the problems of the case in the value evaluation stage,such as insufficient applicability analysis of the evaluation methods for the identified projects,lack of effective bridge between the calculated value of the profit sharing rate and the actual ratio of the commercial contract,lack of process management for the overall rationality test,etc.It is analyzed that the causes of these problems may be the insufficient basic research and data support of the industry,and the consideration of cost saving.Then,based on the problems in the case and the causes of the problems,this paper puts forward more practical improvement suggestions,as well as the implementation and guarantee measures of the improvement scheme.Make the paper complete the whole process of raising problems,analyzing problems and solving problems.The identification,confirmation and evaluation of the identifiable intangible assets of the target enterprise involved in M&A is of great practical significance to both parties of the transaction and the intermediary team serving the M&A.For a long time,the research and standardization of identifiable intangible assets in accounting and evaluation circles have become more and more mature and accepted by the public,but a series of work faced by the initial recognition of identifiable intangible assets in business merger is relatively weak.The theoretical significance of this paper is to supplement the research on the procedure and scope of the initial recognition of identifiable intangible assets under enterprise M&A.