With the deepening of the market economy and the development of world economic integration, mergers and reorganizations between enterprises have become more frequent. Mergers and acquisitions bring market value and performance growth to the company, but also bring huge risks of goodwill. The impact of goodwill on the consolidated statements is growing, and more and more companies are losing money due to the large amount of goodwill impairment.The accounting treatment of goodwill has gradually caused heated discussion in the accounting profession. The follow-up measurement of goodwill has become a hot topic in the accounting profession.
This paper firstly combs the literature of domestic and foreign scholars on goodwill, and draws the research direction of this paper and introduces four main follow-up measurement methods in chronological order. Through further analysis of the impairment test method, the main problems of the current impairment test method in China are found. Then combined with the case of Huayi Brothers Media Corporation, three different methods of goodwill follow-up measurement were used to calculate the relevant financial data, and the operational capability, solvency, profitability and financial statement related items were compared and analyzed. Finally, the follow-up measurement was proposed. Method recommendations.
Keywords：Merger goodwill; goodwill initial recognition; subsequent measurement; impairment test
