Importance of Value of the Company for Development Business

2021 ◽  
pp. 205-215
Author(s):  
Lavinia Essen Yildirim ◽  
Diana Andreea Mândricel
Keyword(s):  
Quality Management ◽  
Development Strategy ◽  
Balance Sheet ◽  
Economic Benefits ◽  
Research Directions ◽  
Income Statement ◽  
New Research

The value of the company is necessary to become the key element in any entity development strategy. In this context, the action of the market contemporary forces determines certain behavior of the companies, which become more and more engaged in the resources, quality, customers, and suppliers, in which the top role is played by the top quality management. At the same time, the value of an enterprise or rather of its shares is no longer calculated as the sum of the values of its assets but determined by its ability to generate economic benefits, and the balance sheet loses interest in the income statement. This chapter analyses the new research directions regarding the value of the company in managing business risks.

Perceiving the Value of the Company in Managing Business Risks

2020 ◽  
pp. 198-208
Author(s):  
Lavinia Essen
Keyword(s):  
Development Strategy ◽  
Innovation Process ◽  
Integrated System ◽  
Research Directions ◽  
Clear Vision ◽  
Managerial Culture ◽  
Overall Performance ◽  
New Research ◽  
A Company

Seen as a reflection of the clear vision of some extreme leaders, the overall performance of the entity is achieved today against the backdrop of the innovation process. The value of the company is necessary to become the key element in any entity development strategy. However, it requires a comparative analysis of the entity with other market players or emerging markets. This chapter analyzes the new research directions at the intersection between accounting and management, with the role of potentiating the important valorization of managerial culture and the implementation of an integrated system of performance indicators to accurately determine the value of a company.

scholarly journals CONCEPT OF “HIDDEN ASSETS” AND METHODOLOGICAL BASES FOR THEIR ASSESSMENT

2020 ◽  
Vol 6 (5) ◽  
pp. 54-63
Author(s):  
Borys Burkynskyi ◽  
Valeriy Goryachuk ◽  
Julia Nazarenko
Keyword(s):  
Development Strategy ◽  
Methodological Approach ◽  
Balance Sheet ◽  
Value Added ◽  
Economic Benefits ◽  
Point Of View ◽  
Methodological Approaches ◽  
The Difference ◽  
Definition Of ◽  
The Right

To assess the prospects of an enterprise and plan its activities, it is very important to know what assets it has, including hidden assets. Today, there is no single understanding of this concept. Some researchers attribute this to an underestimation of the company’s assets, others – to a lack of accounting for assets, or to insufficient use of assets. This is the result of applying various methodological approaches and insufficient research of this concept. On the ground of a methodological approach based on the identification of generic concepts and essential features, a generalized definition of the concept of “hidden assets” is proposed. These are assets, value of which on the company’s balance sheet is undervalued compared to their real value, or which are not reflected in the balance sheet, or which are underutilized and which are real assets, and which are capable to provide a competitive advantage or economic benefit. This definition of the concept of “hidden assets” allows to combine different existing points of view on this concept and to look at the capital of an enterprise in a broader context. The difference between the concepts of “hidden assets” and “accounted assets” from the point of view of law is considered separately. Assets that are recorded in the balance sheet belong to the enterprise based on ownership rights. As for hidden assets, as a rule, the enterprise in relation to them has the right to use only. Firstly, this applies to the leased fixed assets, human capital (use of time, knowledge and skills of specialists). In other words, the right to use is of crucial importance. In this case, the assets of the enterprise are considered as a set of rights to receive economic benefits. With such a broad view, the components of the hidden capital of an enterprise can be identified. Analysis of existing methodological approaches to the assessment of hidden assets has shown that they have significant methodological shortcomings and difficulties in applying and collecting the necessary initial data. Methodological bases for estimation of hidden assets are proposed based on the defined concept of “public value of an enterprise” as the sum of all assets used by an enterprise to create gross value added. Calculations have shown that the average share of hidden assets of Ukrainian enterprises in the period from 2012 to 2018 in the total volume of all assets is 33.7 %, and by type of economic activity from 14.3 % in construction to 70.1 % in agriculture. Hidden assets are the missing link in determining the level of capitalization of an enterprise. All other things being equal, the difference in the level of economic development of enterprises can be explained by differences in the volume and structure of their hidden assets. Hidden assets can be the key to creation of an enterprise’s development strategy.

scholarly journals ANALYSIS OF THE BALANCE SHEET FROM THE ASPECT OF BUILT-IN ESTIMATES

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Nedim Smailović ◽  
Milanka Aleksić ◽  
Nina Uremović
Keyword(s):  
Economic Value ◽  
Balance Sheet ◽  
Economic Benefits ◽  
Accounting Practice ◽  
Financial Position ◽  
Income Statement ◽  
Fixed Assets ◽  
Assets Assessment ◽  
Basic Hypothesis ◽  
Available Information

The balance sheet should present the financial position of the company truthfully and objectively. The presentation of the balance sheet requires the use of the best possible estimates and reasonable assumptions that are reflected in the value of the balance sheet items. Estimates are based on historical and other available information at date of the balance sheet. Each estimate carries a risk with an outcome in materially significant adjustments to the present value of assets, liabilities, incomes and expenses in the next financial year. In the absence of a precise method of measurement, an assessment of the financial statement items is made. The use of adequate estimates does not compromise the reliability of the balance sheet. However, due to the uncertainty of business activities and a certain distinctiveness in the understanding of accounting and economic value, balance sheet items may take different values. There are numerous examples of misuse of creative accounting in accounting practice, and when implemented untrue and biased information is published. The motives for such actions are different, ranging from the need of avoiding paying taxes, more profitable business sales, gaining better creditors position and creditors, to the realization of bonuses and management privileges. In addition to management, competent external experts are hired for appraisal work, whose work does not always have to be reliable because an alternative appraiser can be selected or manipulative data can be provided as a basis for assessment. The aim of this paper is to point out the balance sheet items that carry the greatest risks of objective reporting, and to assess the validity of the applied concept (basis) for measurement. The paper also points to possible ways of manipulating the balance sheet: if you want to show a financial result lower than the real one, then the value of assets is shown lower than it really is, and income statement expenses increase, while the situation is reversed if the company wants to show better financial results of the existing ones: then the estimated value of the assets in the balance sheet increases, and the value of the expenses in the income statement decreases. The paper starts from the basic hypothesis that the value assets assessment affects the presentation of the financial position of the company. An important item in the estimates is the assessment of the useful life of fixed assets. These estimates are reviewed annually and changed in accordance with the expected changes and the dynamics of spending the future economic benefits of fixed assets. The hypothesis proof was performed on the example of the analysis of the property position of a large service company for the period from 2004 to 2019. The results indicate that estimates can significantly correct the financial position of the company, and that the analysis of the company should focus on positions that are subject to assessments and that can significantly change the value of the company, instead of cash and liquidity positions that are considered priority in most analysis.

scholarly journals Analisis Penghentian Pengakuan Aset Tetap Pada PT Central Light Concrete Berdasarkan SAK-ETAP

2019 ◽  
Vol 16 (2) ◽  
Author(s):  
Eka Yuni Amaliya ◽  
Sjamsul Hidayat ◽  
Andrianto Andrianto
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Economic Benefits ◽  
New Production ◽  
Fixed Asset ◽  
Income Statement ◽  
Fixed Assets ◽  
Production Concept ◽  
Useful Life ◽  
Collection Methods

ABSTRACT This study aims to determine the analysis of the termination of fixed asset recognition at PT Central Light Concrete based on SAK-ETAP. The method in the study is descriptive with a qualitative approach, namely by providing an overview of the analysis of the termination of fixed assets at PT Central Light Concrete based on SAK-ETAP. In conducting this research, the author uses data collection methods by means of interviews, observation, and documentation.The results of the study indicate that when a fixed asset usage discontinuation occurs because it is damaged or not in accordance with the new production concept, PT Central Light Concrete has not terminated the recognition of fixed assets. PT Central Light Concrete still charges the depreciation of these fixed assets in the income statement and recognizes those fixed assets in the balance sheet.The conclusion in this study is that PT Central Light Concrete has not implemented the termination of recognition of damaged fixed assets or fixed assets that are no longer used before the useful life is used up and still records the depreciation of the fixed assets. This is not in accordance with SAK-ETAP where the entity must stop recognizing fixed assets when released or when no future economic benefits are expected from their use or disposal. Gains or losses arising from derecognition of property and equipment must be recognized in the income statement at the end of the period. Fixed assets that have been derecognized must also be written off from the company's fixed assets list and balance sheet at the end of the period. It is intended that the financial statements presented can help the Management of PT Central Light Concrete in making decisions or policies.Keywords                   : Fixed Assets, Termination of RecognitionCorrespondence to       : [email protected] ABSTRAK  (bahasa indonesia)Penelitian ini bertujuan untuk mengetahui analisis penghentian pengakuan aset tetap pada PT Central Light Concrete berdasarkan SAK-ETAP.Metode dalam penelitian adalah deskriptif dengan pendekatan kualitatif yaitu dengan memberikan gambaran mengenai analisis penghentian pengakuan aset tetap pada PT Central Light Concrete berdasarkan SAK-ETAP. Dalam melakukan penelitian ini, penulis menggunakan metode pengumpulan data dengan cara wawancara, observasi, dan dokumentasi.Hasil penelitian menunjukkan bahwa saat terjadi penghentian pemakaian aset tetap karena rusak atau tidak sesuai dengan konsep produksi yang baru PT Central Light Concrete belum melakukan penghentian pengakuan aset tetap. PT Central Light Concrete masih membebankan penyusutan aset tetap tersebut dalam laporan laba rugi dan mengakui aset tetap tersebut dalam laporan neraca.Kesimpulan dalam penelitian ini adalah PT Central Light Concrete belum menerapkan penghentian pengakuan aset tetap yang rusak atau aset tetap yang tidak dipakai lagi sebelum umur manfaatnya habis dan masih mencatat penyusutan aset tetap tersebut. Hal ini tidak sesuai dengan SAK-ETAP di mana entitas harus menghentikan pengakuan aset tetap pada saat dilepaskan atau ketika tidak ada manfaat ekonomi masa depan yang diekspektasi dari penggunaan atau pelepasannya. Keuntungan atau kerugian yang timbul dari penghentian pengakuan aset tetap harus diakui dalam laporan laba-rugi di akhir periode. Aset tetap yang telah dihentikan pengakuannya juga harus dihapuskan dari daftar aset tetap perusahaan dan laporan neraca di akhir periode. Hal ini bertujuan agar laporan keuangan yang disajikan dapat membantu Manajemen PT Central Light Concrete dalam pengambilan keputusan atau kebijakan.Kata kunci                  : Aset Tetap, Penghentian PengakuanKorespondensi             : [email protected]

ANALISIS LAPORAN KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PT. ASTRA AGRO LESTARI Tbk

2019 ◽  
Vol 5 (2) ◽  
pp. 75-88
Author(s):  
M. Shobihin ◽  
Sayekti Suindyah Dwiningwarni ◽  
Supriadi Supriadi
Keyword(s):  
Financial Performance ◽  
Good Condition ◽  
Balance Sheet ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Business Decisions ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Income Statement ◽  
Quantitative Descriptive

The financial statements serve as a benchmark in assessing the financial performance of the company as the basis for making business decisions. The motivation in conducting this research is to support previous research to see the development condition of one of the oil palm plantation companies. The purpose of this study is to assess the financial performance by using financial ratio analysis and horizontal analysis. The method used in this research is Quantitative Descriptive with analysis design using Term series Analysis. The result of the research based on financial ratio analysis shows the liquidity ratio and solvency ratio in good condition, while the activity ratio and profitability ratio are not good because it is below the industry average of similar companies. Based on horizontal analysis, financial performance fluctuated and influenced internal and external factors such as operational performance and the average price of world palm oil. The limitations of this study are using only two analytical tools and financial statements analyzed only the balance sheet and income statement.

INNOVATION CAPABILITY, ABSORPTIVE CAPACITY AND SMES PERFORMANCE IN PAKISTAN: THE MODERATING EFFECT OF BUSINESS STRATEGY

2018 ◽  
Vol 13 (Number 2) ◽  
pp. 1-11
Author(s):  
Muhammad Zulqarnain Arshad ◽  
Darwina Arshad
Keyword(s):  
Economic Growth ◽  
Absorptive Capacity ◽  
Business Strategy ◽  
Innovation Capability ◽  
Research Directions ◽  
Conceptual Paper ◽  
And Performance ◽  
New Research ◽  
The Relationship ◽  
Crucial Part

The small and medium-sized enterprises (SMEs) play a crucial part in county’s economic growth and a key contributor in country’s GDP. In Pakistan SMEs hold about 90 percent of the total businesses. The performance of SMEs depends upon many factors. The main aim for the research is to examine the relationship between Innovation Capability, Absorptive Capacity and Performance of SMEs in Pakistan. This conceptual paper also extends to the vague revelation on Business Strategy in which act as a moderator between Innovation Capability, Absorptive Capacity and SMEs Performance. Conclusively, this study proposes a new research directions and hypotheses development to examine the relationship among the variables in Pakistan’s SMEs context.

MATERIAL HANDLING MACHINES AND SYSTEMS – UMI-TWINN PROJECT CONTRIBUTION

2019 ◽  
Vol 12 (1) ◽  
pp. 7-20
Author(s):  
Péter Telek ◽  
Béla Illés ◽  
Christian Landschützer ◽  
Fabian Schenk ◽  
Flavien Massi
Keyword(s):  
Material Handling ◽  
Digital Data ◽  
Flow Process ◽  
Research Directions ◽  
Scientific Excellence ◽  
Research Activities ◽  
New Research ◽  
Eu Project ◽  
The University

Nowadays, the Industry 4.0 concept affects every area of the industrial, economic, social and personal sectors. The most significant changings are the automation and the digitalization. This is also true for the material handling processes, where the handling systems use more and more automated machines; planning, operation and optimization of different logistic processes are based on many digital data collected from the material flow process. However, new methods and devices require new solutions which define new research directions. In this paper we describe the state of the art of the material handling researches and draw the role of the UMi-TWINN partner institutes in these fields. As a result of this H2020 EU project, scientific excellence of the University of Miskolc can be increased and new research activities will be started.

The Relation between Accounting Information in Debt Covenants and Operating Leases

2015 ◽  
Vol 29 (4) ◽  
pp. 969-996 ◽  
Author(s):  
Daniel Gyung H. Paik ◽  
Joyce A. van der Laan Smith ◽  
Brandon Byunghwan Lee ◽  
Sung Wook Yoon
Keyword(s):  
Balance Sheet ◽  
Accounting Information ◽  
Debt Covenants ◽  
Debt Contracts ◽  
Debt Contracting ◽  
Income Statement ◽  
Operating Leases ◽  
The Impact ◽  
Accounting Ratios ◽  
Lease Accounting

SYNOPSIS Proposed changes by the FASB and the IASB to lease accounting standards will substantially change the accounting for operating leases by requiring the capitalization of future lease payments. We consider the impact of these changes on firms' debt covenants by examining the frequency of income-statement- versus balance-sheet-based accounting ratios in debt covenants of firms in high and low Off Balance Sheet (OBS) lease industries. Based on debt contracts from the 1996–2009 period, our results provide evidence that lenders focus on balance sheet (income statement) ratios in designing debt covenants for borrowers in low (high) OBS lease industries. Further, the use of balance-sheet- (income-statement-) based covenants falls (rises) faster in high OBS lease industries than in low OBS lease industries as the use of OBS leasing increases. This evidence indicates that OBS operating leases influence lenders' use of accounting information in covenants, suggesting that creditors consider the impact of OBS leases when structuring debt agreements. These results also suggest that the proposed capitalization of OBS leases may not result in firms violating loan covenants but will make the balance sheet a more complete source of information for debt contracting by removing the need for constructive capitalization of OBS leases.

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