Splashing and spreading of a liquid by drop impact on liquid film depends on the impact velocity, drop size, drop properties and liquid film thickness. These parameters can be summarized by three main dimensionless parameters: Weber number, Ohnesorge number and non-dimensional film thickness. Upon impact of a drop on liquid film, these parameters influence the shape of the splash and the formation and propagation of the crown. In the present study, the splashing and spreading resulting from drop impact on liquid film has been numerically investigated by using a Level Set method for the interface tracking of the two-phase flow simulation. For various dimensionless parameters, characteristics of the crown formation and spreading were predicted, and the results were found to show good agreement with available experimental data in the earlier stage of crown formation and show some discrepancies in the later stage of crown spreading due to the present 2D axi-symmetric computation, which cannot predict the secondary drops.