ECONOMIC VALUE ADDED ACCOUNTING : AN APPROPRIATE CORPORATE PERFORMANCE MEASURE
Journal Title: IJAR-Indian Journal of Applied Research - Year 2017, Vol 7, Issue 8
Abstract
Economic Value Added Accounting has been acclaimed to be the most recent and exciting innovation in company performance measures. It can bring great value to a company by focusing the entire organization on activities that produce results valued by shareholders. This study examines the benefits and limitations of using EVA Accounting as a performance measure. Economic Value Added is a technique to measure wealth created for shareholders. EVA is the surplus generated by an entity after meeting an equitable charge towards providers of capital. It is the post-tax return on capital employed (adjusted for the tax-shield on debt) less than the capital employed. Companies which earn higher returns than cost of capital are creating shareholder's value.This technique to measure performance of a company is far better than that of PAT, EPS, ROA.
Authors and Affiliations
Dr. Virender S. Poonia, Ms Vandana
Keywords
Related Articles
- EP ID EP460147
- DOI -
- Views 30
- Downloads 0
Prevalence of Shock and its Outcome in Children Admitted in A Tertiary Care Centre
Introduction: Shock is a syndrome that results from inadequate oxygen delivery to meet metabolic demands. Sequelae of shock are metabolic acidosis, organ dysfunction and death. Aim: To study the prevalence of pediatric s...
A CASE STUDY ON RETINITIS PIGMENTOSA WHICH RESPONDED TO AYURVEDIC MANAGEMENT
Retinitis pigmentosa (RP) is an inherited retinal dystrophy leading to progressive loss of vision and blindness. According to some studies the prevalence of RP is reported to be 1/3,000 to 1/5,000. The case presented wit...
PERCEPTION OF HAZARDS OF TOBACCO USE: EFFECT OF EDUCATIONAL INTERVENTION AMONG SCHOOL STUDENTS IN A SUBURBAN AREA OF WEST BENGAL.
Background: Adolescence is a crucial crossover time of human life and tobacco use in this age group is not uncommon as revealed by GYTS India 2009 estimates (14.6%). Objectives and methodology: An interventional study wa...
TO STUDY THE ROLE OF PARENTAL ATTITUDE ON FRUSTRATION OF ADOLESCENTS OF FEROZEPUR DISTT.
The Purpose of this research was to study about the role of parental attitude on frustration of adolescents. For this purpose, 200 adolescents were selected from Ferozepur District. For Data collection, frustration test(...
CAREER DEVELOPMENT POLICIES AND PRACTICES IN BANKS – A STUDY WITH SPECIAL REFERENCE TO SELECTED PRIVATE AND PUBLIC SECTOR BANKS
The business organization are attaching great importance to human resource because human resources are the biggest source of competitive advantage and has the capability of converting all the other resources into product...