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

Kód výsledku v 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>

Nalezeny alternativní kódy

RIV/61384399:31110/17:00049810

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

New Trends in Finance and Accounting

ISBN

978-3-319-49558-3

ISSN

2198-7246

e-ISSN

neuvedeno

Počet stran výsledku

7

Strana od-do

783-789

Název nakladatele

Springer

Místo vydání

Berlin

Místo konání akce

Prague

Datum konání akce

27. 5. 2016

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000416113500072