The Valuation of Assets as a Non-Monetary Contribution to a Water Management Company
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26110%2F26%3A0199922" target="_blank" >RIV/00216305:26110/26:0199922 - isvavai.cz</a>
Result on the web
<a href="https://www.mdpi.com/2071-1050/17/24/11171" target="_blank" >https://www.mdpi.com/2071-1050/17/24/11171</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.3390/su172411171" target="_blank" >10.3390/su172411171</a>
Alternative languages
Result language
angličtina
Original language name
The Valuation of Assets as a Non-Monetary Contribution to a Water Management Company
Original language description
A large number of state-owned companies were privatized in the Czech Republic after the end of the communist regime, mostly through their transformation into joint-stock companies. The water management sector was no exception from this process. The ownership of infrastructure networks was transferred to individual municipalities, which are legally obliged to provide their inhabitants with water supply and sewerage disposal. Subsequently, the municipalities joined together in joint-stock companies to enhance their capacity to provide sufficient financial resources for the rehabilitation and development of water infrastructure and also to enable the implementation of sustainable water management strategies, which are key to environmental protection. Assets contributed to joint-stock companies in the form of non-monetary contributions serve as a basis for a proportionate allocation of shares, representing the shareholder’s share of participation in the company’s management. An analysis of the asset performance within these companies indicates the necessity of developing an optimized methodology for determining the number of shares allocated for such non-monetary contributions. This need arises from significant disparities in both profitability and cost-efficiency among municipalities, depending on factors such as population size (revenues) and the length and technical characteristics of the infrastructure networks (costs) contributed to the joint-stock companies. The authors of the article present the research project results, aimed at developing a methodological procedure for determining the price (value) of municipal infrastructure assets contributed as non-monetary capital to a joint-stock company that owns and operates water management networks, from which the secondary objective of determining the fair value of a municipality’s water management infrastructure assets based on the developed methodology is derived. The proposed methodological procedure is primarily based on establishing the ratio between the fixed and variable costs of the municipality.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
20102 - Construction engineering, Municipal and structural engineering
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Sustainability
ISSN
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e-ISSN
2071-1050
Volume of the periodical
2025
Issue of the periodical within the volume
17(24)
Country of publishing house
CH - SWITZERLAND
Number of pages
20
Pages from-to
1-20
UT code for WoS article
001647371900001
EID of the result in the Scopus database
2-s2.0-105025937965