First of all, the new enterprise standards promulgated by the state at the macro level introduced the goodwill impairment test mechanism. Although the measurement method of subsequent goodwill standards has changed to truly reflect the fair value of goodwill and improve the decision-making usefulness of accounting information, this measure has largely become the result of compromise made by standard makers to cancel the equity combination method.
Secondly, at the meso level, due to the different development scale, business model, competition degree, resource aggregation model and M&A demand of different industries, there are significant differences in the total amount of goodwill and the amount of goodwill impairment among industries.
Finally, at the micro level, the internal corporate governance structure, management shareholding ratio, management changes, performance indicators of the year, dividend plan based on accounting profits and other variables will affect the accounting treatment and impairment reserve of the goodwill of listed companies.
Legal basis: Accounting Standards for Enterprises No.8-Impairment of Assets
Article 4 An enterprise shall judge whether there are signs of possible impairment of assets on the balance sheet date.
Whether there are signs of impairment or not, the goodwill formed by business combination and intangible assets with uncertain service life should be tested for impairment every year.
Article 5 The following signs indicate that assets may be impaired:
The market price of (1) assets fell sharply in the current period, and it was significantly higher than the expected decline due to the passage of time or normal use.
(2) The economic, technical or legal environment in which the enterprise operates and the market in which the assets are located have undergone major changes in the current period or in the near future, thus adversely affecting the enterprise.
(3) The current market interest rate or other market investment returns increase, which affects the discount rate of enterprises in calculating the present value of the expected future cash flow of assets, resulting in a significant reduction in the recoverable amount of assets.
(4) There is evidence that the asset is out of date or its entity has been damaged.
(5) The assets have been or will be idle, terminated or planned to be disposed of in advance.
(6) The evidence from the internal report of the enterprise shows that the economic benefits of the assets have been or will be lower than expected, such as the net cash flow created by the assets or the operating profit (or loss) realized is far lower (or higher) than expected.
(seven) other signs that the assets may have been impaired.