Newly initiated investment projects increase economic income in the amount of their net present value. In addition, economic income is generated by the passing of time, when the interest on the present values is earned. This latter effect is often termed time effect. It is therefore advisable to control for the interest to be earned simply to provide an adequate return on the net present value of the beginning of the period. This leads to an adequate return on the firm value at the beginning of the period. This measure is denoted as residual economic income (REI):
The above formulation shows that a positive value for REI indicates that additional value was created, whereas the opposite holds true for value-destruction. A value of 0 indicates that the original projections were exactly met and an adequate return was earned.情绪智力情绪管理外文文献及翻译
By applying the clean-surplus-relation, the measure can be expressed in terms of residual income and goodwill: given the equations above, we can rewrite the definition of REI as follows
By substituting ∆Vt = ∆Bt + ∆GWt and by applying the clean-surplus-relation, we get
the following definition for REI
Since REI is directly related to value creation, it can be used as a performance measure to align managers’ and shareholders’ interests. This REI is directly related to EVC. EVC represents the accumulated generation of value over time. To capture the performance of a single period, changes of EVC need to be considered. An increase in
EVC in the single period t (ΔEVCt) is given by:
EVC will increase over time, even without initiating any new projects, at a rate equivalent to the cost of capital, solely due to the passing of time. Taking account of this time effect results in the following expression:
= RI t + ΔGWt − r × GWt −1
Hence, the resulting performance measure equals the above described REI. We conclude that a one-period change in EVC less its costs of capital is identical to the concept of REI described above. REI is an ideal measure of performance in the sense that it informs both about newly created value as well as about deviations between original plans and realized figures.
The above deviation shows that EVC and REI are directly related to goodwill. REI can be calculated for each division based on the accounting information required for goodwill accounting purposes. As a consequence, the information resulting from goodwill accounting can be used to calculate a measure of actual value creation of a specific period. Whether the information gathered for impairment testing according to IAS 36 and FAS 142 will be analysed in more detail in section 4.
3.2. Numerical Example 企业客户情绪管理论文+研究现状+问题对策+外文文献
In the following, we provide a numerical example in order to demonstrate the properties of REI and its connection to goodwill accounting. To keep the calculations as simple as possible, we abstract from taxes and debt financing and assume full distribution of free cash flows to the owners.
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