scholarly journals THE HUMAN CAPITAL OF AN ENTERPRISE: THEORY AND ASSESSMENT METHODOLOGY

2019 ◽  
Vol 5 (2) ◽  
pp. 176 ◽  
Author(s):  
Nataliia Pravdiuk ◽  
Vitalii Pokynchereda ◽  
Maryna Pravdiuk
Keyword(s):  
Human Capital ◽  
Professional Experience ◽  
Accounting System ◽  
Assessment Methodology ◽  
Practical Application ◽  
Accounting Data ◽  
Advantages And Disadvantages ◽  
Capital Assets ◽  
Physical Abilities ◽  
The Cost

At the present stage of social development, there is a transformation of the persistent views on the place and human role in the economic system. Human capital assets as a set of productive abilities, personal traits, and employee motivation developed as a result of investment become a key factor in the production process, without which any prospects of economic growth are neutralized. The purpose of the article is to provide a theoretical substantiation and systematization of existing methods for assessing human capital, to identify the advantages and disadvantages of their practical application in the enterprise activity, and to develop recommendations aimed at improving the human capital assessment methodology in order to further reflect information on the cost of human capital assets in accounting and reporting of enterprises Methodology. The methodological basis of the study is the historical and logical method used in the study of the economic essence of human capital assets and the evolution of human capital assessment methodology. Dialectical method and comparative analysis have been used to determine the differences between existing human capital assessment methods and to identify positive and negative aspects of their practical application. The methods of scientific abstraction, induction and deduction, analysis and synthesis have been used in developing the methodology for assessing human capital assets and justifying the opportunities for its integration into the accounting and reporting system of the enterprise. Results. It has been established that in international practice, there is a cost-based, profitable, and expert methodology for assessing human capital assets. Based on the analysis of positive and negative aspects of the application of these methods, it is substantiated that from the standpoint of accounting the most cost-based model of human capital assets is the most optimal since it is based on the principle of actual cost peculiar to accounting practice. Taking this into consideration, a cost-based methodology for assessing human capital assets of the enterprise has been suggested, according to which the cost of human capital assets is calculated by capitalizing the costs borne by the employee and the enterprise at all stages of the formation and development of human capital assets, namely, the costs of developing the employee’s physical abilities (the cost of developing his/her physical abilities), the cost of training (tuition fee in educational institutions), the cost of obtaining professional experience (the cost of professional experience), and the costs of its professional training (the cost of vocational training in the process of his/her employment). Practical meaning. The introduction of the suggested methodology for assessing human capital assets creates the prerequisites for the subsequent display of information in business accounting and reporting, which in its turn increases the level of informativity of accounting data, promoting to meet the growing needs of external and internal users of information, provides an opportunity to consider the value of human capital in determining the market value of the company. Besides, the suggested assessment methodology enables to produce information about the cost of human capital assets of the enterprise, which is the basis for determining the effectiveness of its use. Value/originality. The suggested methodology for assessing human capital assets creates prerequisites for its implementation in the accounting system of the enterprise, which will create the basis for displaying information about the cost of human capital assets in the enterprise’s reporting, which corresponds to the objectives of value-oriented enterprise management.

scholarly journals PRACTICAL APPLICATION OF INCOME CAPITALIZATION METHOD IN BUSINESS VALUATION – SOME HIGHLIGHTS

2019 ◽  
Vol 34 (1) ◽  
pp. 25-30
Author(s):  
Lyubomir Todorov
Keyword(s):  
Growth Rate ◽  
Cost Of Capital ◽  
Market Value ◽  
Annual Growth Rate ◽  
Cost Of Equity ◽  
Practical Application ◽  
Business Valuation ◽  
Advantages And Disadvantages ◽  
The Cost

The paper describes the advantages and disadvantages of the income approach in business valuation, the essence of the method of income capitalization, as well as the peculiarities related to its application. Two main variants of the method are presented, depending on the choice of income to be capitalized. The first option is based on the net cash flow and is mainly applied to the valuation of enterprises with high investment absorption and, respectively, high share of depreciation in total expenses. The second option is based on net profit and is preferred by valuers when valuing low investment absorption firms or holding companies.A practical case study is presented to evaluate a holding company related to the determination of the market value of a minority share package. The cost of equity of the rated entity is determined by the CAPM model modifications for emerging markets. At the end, conclusions have been drawn and some problems have been described that appraisers should pay attention to. The Income Capitalization method has an easy algorithm, but its practical application is not so simple. Both fundamental knowledge and experience, as well as evaluators' attention are required, as a number of factors and circumstances must be taken into account regarding: the choice of income to be capitalized, the choice of variant for valuation methodology, model for determining the cost of equity or the weighted average cost of capital, determining the “small firm risk premium”, determining the normalized income, the long-term rate of income growth, adjustments for minority or majority ownership, adjustments for marketability and others. In this method, the market value of equity (VE) is highly sensitive to the discount rate (the cost of capital), the long-term growth rate and the capitalization rate, respectively. Even small differences in these parameters can lead to a large difference in the value of the estimate. This requires precision and good argumentation on the part of the valuers regarding the pricing of equity, the cost of debt and the long-term average annual growth rate of income.For companies with stable incomes and good prospects for development, this method provides a relatively accurate estimate of the market value of equity. However, it must be borne in mind that the future is always uncertain. In this regard, appraisers should make a sufficiently accurate assessment of the level of business risk and financial risk of the entity being evaluated.

scholarly journals Modern methods of analysis and management of production inventories.

2021 ◽  
Vol 3 (3) ◽  
pp. 311-318
Author(s):  
Volodymyr Bobyl ◽  
◽  
Olena Pikulina ◽  
Maryna Movchan
Keyword(s):  
Inventory Management ◽  
Accounting System ◽  
Railway Transport ◽  
Inventory Analysis ◽  
Successful Operation ◽  
Accounting Data ◽  
Advantages And Disadvantages ◽  
Production Inventory ◽  
Modern Methods ◽  
And Storage

. The state and efficiency of production inventory management are the main conditions for the successful operation of an enterprise in a market economy. The main purpose of the enterprises' activities is to maximize profits, which can be achieved, inter alia, by increasing the turnover of stocks, when with a smaller warehouse area and lower inventory maintenance costs, the previous volume of sales increases or remains. The authors of the article analyzed modern methods of inventory analysis and management. Each of the considered methods has both advantages and disadvantages, so the use of a certain technique depends on the scope of the enterprise. Inventory management at the enterprise requires a rational inventory movement accounting system. The company should have a system for registering the acquisition and use of stocks. In addition, periodic checks of compliance with the actual availability of inventory and accounting data are required. Based on the conducted research, the main tasks in solving the problems of inventory management are identified: systematization of approaches to inventory management; reduction of costs for their acquisition and storage in warehouses of enterprises; increasing the efficiency of control in solving the tasks facing the enterprise. The existing structure of supplies of production stocks at railway transport enterprises does not allow for the full use of inventory management methods. In such conditions, it is necessary to create a managed system that will enable the use of various methods of management and optimization of production stocks. This system should include efficient logistics and management accounting of production stocks. It is advisable to introduce a system of standard (regulatory) costs in individual structural divisions. The use of combinations of methods for optimizing production stocks at railway transport enterprises will minimize operational costs through effective management of them.

Main approaches to estimating the cost of shareholder equity of oil and gas producers

2020 ◽  
Vol 26 (3) ◽  
pp. 685-697
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Minimum Cost ◽  
Free Cash Flow ◽  
Annual Reports ◽  
Comparative Approach ◽  
Economic Activities ◽  
Advantages And Disadvantages ◽  
Oil And Gas Producers ◽  
The Cost

Subject. The study analyzes generally accepted approaches to assessing the value of companies on the basis of financial statement data of ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, EOG Resources, Apache, Marathon Oil, Imperial Oil, Suncor Energy, Husky Energy, Canadian Natural Resources, Royal Dutch Shell, Gazprom, Rosneft, LUKOIL, and others, for 1999—2018. Objectives. The aim is to determine the specifics of using the methods of cost, DFC, and comparative approaches to assessing the value of share capital of oil and gas companies. Methods. The study employs methods of statistical analysis and generalization of materials of scientific articles and official annual reports on the results of financial and economic activities of the largest public oil and gas corporations. Results. Based on the results of a comprehensive analysis, I identified advantages and disadvantages of standard approaches to assessing the value of oil and gas producers. Conclusions. The paper describes pros and cons of the said approaches. For instance, the cost approach is acceptable for assessing the minimum cost of small companies in the industry. The DFC-based approach complicates the reliability of medium-term forecasts for oil prices due to fluctuations in oil prices inherent in the industry, on which the net profit and free cash flow of companies depend to a large extent. The comparative approach enables to quickly determine the range of possible value of the corporation based on transactions data and current market situation.

Classification of the factors forming the cost of the web-site

2017 ◽  
Vol 31 (2) ◽  
pp. 82-89
Author(s):  
E. S. Epifanov
Keyword(s):  
Web Site ◽  
Internet Site ◽  
Advantages And Disadvantages ◽  
Major Factors ◽  
The Cost ◽  
The Web

This article presents a classification of major factors that shape the cost of Internet site. Also discusses the limitations in determining the objectives of the web site; advantages and disadvantages of different factors.

scholarly journals Advances in Applying Computer-Aided Drug Design for Neurodegenerative Diseases

2021 ◽  
Vol 22 (9) ◽  
pp. 4688
Author(s):  
Mootaz M. Salman ◽  
Zaid Al-Obaidi ◽  
Philip Kitchen ◽  
Andrea Loreto ◽  
Roslyn M. Bill ◽  
...  
Keyword(s):  
Drug Design ◽  
Neurodegenerative Diseases ◽  
Docking Studies ◽  
New Drugs ◽  
Computer Aided Drug Design ◽  
Biological Assays ◽  
Advantages And Disadvantages ◽  
Computer Aided ◽  
Research Challenge ◽  
The Cost

Neurodegenerative diseases (NDs) including Alzheimer’s disease, Parkinson’s disease, amyotrophic lateral sclerosis, and Huntington’s disease are incurable and affect millions of people worldwide. The development of treatments for this unmet clinical need is a major global research challenge. Computer-aided drug design (CADD) methods minimize the huge number of ligands that could be screened in biological assays, reducing the cost, time, and effort required to develop new drugs. In this review, we provide an introduction to CADD and examine the progress in applying CADD and other molecular docking studies to NDs. We provide an updated overview of potential therapeutic targets for various NDs and discuss some of the advantages and disadvantages of these tools.

The financial consequences of human capital disclosure as part of integrated reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Salvi ◽  
Nicola Raimo ◽  
Felice Petruzzella ◽  
Filippo Vitolla
Keyword(s):  
Human Capital ◽  
Firm Value ◽  
Fixed Effects ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Firm Risk ◽  
Integrated Reporting ◽  
Content Type ◽  
Financial Consequences ◽  
The Cost

PurposeThe purpose of this paper is to analyse the financial consequences of the level of human capital (HC) information disclosed by firms through integrated reports. Specifically, this work examines the effect of HC information on the cost of capital and firm value.Design/methodology/approachA manual content analysis is used to measure the level of HC information contained in integrated reports. A fixed-effects regression model is used to analyse 375 observations (a balanced panel of 125 firms for the period 2017–2019) and test the financial consequences of HC disclosure.FindingsThe empirical outcomes indicate that HC disclosure has a significant and negative effect on the cost of capital and a positive impact on firm value. Our results show that companies can reduce investors' perceived firm risk by improving HC disclosure, leading to a lower cost of capital. Moreover, our findings support the notion that increased levels of HC disclosure are linked to firms' improved access to external financial resources, consequently enhancing firm value.Originality/valueThis study is the first contribution to examine the financial consequences of HC disclosure and is one of the first to examine the level of HC information within integrated reports.

Filling in the gaps in bookkeeping and tax accounting: A comparative analysis of international and Russian practices

2021 ◽  
Vol 24 (3) ◽  
pp. 338-368
Author(s):  
Ekaterina V. OLOMSKAYA ◽  
Andrei A. AKSENT'EV
Keyword(s):  
Information Systems ◽  
Tax Planning ◽  
Accounting System ◽  
Accounting Systems ◽  
Accounting Information System ◽  
Foreign Countries ◽  
Analysis And Synthesis ◽  
The Cost ◽  
The Impact ◽  
Tax Accounting

Subject. This article explores the origination of the differences between bookkeeping and tax accounting, and their impact on decision-making. Objectives. The article aims to examine the reasons for the discrepancies between bookkeeping and tax accounting, reveal some aspects of accounting of differences from the position of their registration in a uniform accounting system or two parallel systems, if available, and determine the impact of such gaps on investment and management decisions. Methods. For the study, we used analysis and synthesis, observation, comparison, and the dialectical and data collection methods. Results. The article reveals the key features of the interaction between bookkeeping and tax accounting in Russia and foreign countries. It justifies that in today's economic realities, addressing shortcomings between these information systems is not a necessity, and shows the possible impact of differences on investment decisions. The article also graphically presents the application of cost-plus and balance-based methods of accounting for deferred taxes depending on the way information systems are organized, as well as their comparative characteristics. Conclusions and Relevance. The discrepancies between the two accounting systems provide an opportunity to assess the impact of tax planning on drawing a veil over the accounting profit. Studying the cost and balance methods, as well as the dialectic of the interaction of tax planning with the accounting information system, remain relevant. The results of the study can be useful to accounting and tax specialists, and other stakeholders who are studying the interactions of these information systems.

THE SCOPE OF ACCREDITATION OF THE FORENSIC LABORATORY: THE CONCEPT AND PATTERNS OF CHANGE

2021 ◽  
Vol 14 (4) ◽  
pp. 340-344
Author(s):  
ELENA CHESNOKOVA ◽  
Keyword(s):  
Forensic Science ◽  
Research Work ◽  
Accreditation Body ◽  
Unfair Competition ◽  
Practical Application ◽  
International Standard ◽  
Advantages And Disadvantages ◽  
Flexible Scope ◽  
Calibration Laboratories

The purpose of the research work is to analyze the advantages and disadvantages of the «flexible» field of accreditation of forensic laboratories and the field of accreditation that has a rigid range. The development of standardization in forensic science, including the expansion of the number of forensic laboratories that build their activities in accordance with the requirements of the international standard GOST ISO/IEC 17025-2019 «General requirements for the competence of testing and calibration laboratories», encourages us to pay attention to this issue again. In the course of the study, the following conclusions were formulated. Insufficient clarity in defining the «flexible» scope of accreditation and differences in the understanding of its boundaries by the accreditation body, the forensic laboratory and the customer can lead to abuse by individual laboratories and the development of unfair competition. This argument in favor of abandoning the «flexible» field of accreditation for forensic laboratories seems to be much more weighty than the listed advantages of its practical application.

Sign in / Sign up

Export Citation Format

Share Document