Abordări în evaluare: abordarea prin venit (II)
Assessment Approaches: The Income Approach (II)
Author(s): Elena Valentina Țilică, Radu CiobanuSubject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: Corpul Experților Contabili și Contabililor Autorizați din România (CECCAR)
Keywords: assessment; income approach; discount rate; future cash flows; updating the cash flow method; profit capitalization method; terminal value;
Summary/Abstract: According to the International Assessment Standards, in order to obtain a certain type of value, the three approaches of the unanimously acknowledged and applied value may be used, that are substantiated on the economic principles of substitution, variable proportions or benefits anticipation: the cost, market and income approach. In the article hereby we present aspects concerning the income approach, which consists of setting the value of the enterprise from the perspective of taking into consideration its capacity to generate profits/earnings for its future functioning. Financially, no investment has sense than by the cash flows likely to be achieved as a result of it. Thus, it is deemed that the amount of any invested capital must be estimated in terms of the earnings brought in the future.
Journal: CECCAR Business Review
- Issue Year: 4/2023
- Issue No: 6
- Page Range: 30-36
- Page Count: 7
- Language: English, Romanian