Invested Capital, Its Importance, and Interpretability Within Income-Based Methods for Determining the Value of the Company

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62690094%3A18450%2F16%3A50005448" target="_blank" >RIV/62690094:18450/16:50005448 - isvavai.cz</a>
Alternative codes found
RIV/61384399:31110/17:00049810
Result on the web
<a href="http://dx.doi.org/10.1007/978-3-319-49559-0_72" target="_blank" >http://dx.doi.org/10.1007/978-3-319-49559-0_72</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/978-3-319-49559-0_72" target="_blank" >10.1007/978-3-319-49559-0_72</a>

Result language
angličtina
Original language name
Invested Capital, Its Importance, and Interpretability Within Income-Based Methods for Determining the Value of the Company
Original language description
The paper deals with the distortion of the economic reality in the accounting showing the volume and structure of invested capital. One of the main sources of deviations in the accounting value of assets from reality is the absence of certain assets, which the company owns but does not report them for certain reasons on its balance sheet. This is essentially the case of specific items of intangible assets, which can be divided into two categories: (1) identifiable and individually valuable intangible assets (e.g., databases, brand, domain names) and (2) primary goodwill or badwill, which occurs only when the return on invested capital (ROIC) is different from the level of WACC, i.e., the return demanded and expected by investors. We propose and name reasons for activation of identifiable intangible assets to ensure that the accounting figures reflect economic reality and are linked to the relevant opportunity costs.
Czech name
—
Czech description
—

Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Similar results(10)