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 47
- Downloads 0
Customer Relationship Management System
The project involves managing customer service and performing the other allied information processing. The Customer Relationship Management handles the customer requisition details, records for stock in consumer products...
RISK FACTORS AND ROAD TRAFFIC ACCIDENTS ON MUMBAI-PUNE EXPRESSWAY
INTRODUCTION: Road traffic injuries are the leading cause of death among people aged between 15 and 29 years. Road traffic crashes cost most countries 3% of their gross domestic product. Without sustained action, road tr...
Effectiveness of Nesting on Posture and Movement of Upper Extremities in Healthy Preterm Infants
Background &Aim: Preterm babies are the delicate lives to be taken care of very intelligently as well as delicately, a helpful step for the preterm to maintain his posture and smooth movement and that is “Nesting” . It i...
A STUDY ON THE LEVEL OF JOB SATISFACTION AMONG EMPLOYEES IN THE INFORMATION TECHNOLOGY (IT) INDUSTRY IN BANGALORE CITY
Most organizations today strive in maintaining a healthy work atmosphere that stimulates enhanced learning, productivity, awareness, satisfaction and well-being of its employees which is the need of the hour. The primary...
Study of Problem Solving Ability Among Senior Secondary School Students.
Problem solving is mental process and is part of the larger problem process that includes problem finding and pr-ob lem shaping. Problem solving has been defined as higher order cognitive process that requires the modula...