ROA vs. ROIC Cover Image


Author(s): Valentin Burcă, Bogdan Cosmin Gomoi
Subject(s): Economy
Published by: Editura Universității Aurel Vlaicu
Keywords: IFRS; economic value added; fair value; market value; correlation

Summary/Abstract: Last developments in financial reporting area have underlined the opportunity and necessity of extending the volume of financial information disclosed by financial statements. To ensure high quality financial information, not just a new marketing tool for managers, financial reporting strategies have been redesigned in order to give more focus on an integrated approach. This was an essential step on providing a solid ground for the new value-based management metrics, which were designed to evaluate management activities, not just on a financial perspective. This way there was emphasized the increasing importance of transferring, partially, information from management accounting to financial reporting. This study is providing evidence on the quantitative differences between the traditional metrics of financial performance and the value-based measurements, revealing significant gaps generated by transition to IFRS, lack of a solid conceptual framework, or fiscal considerations as well

  • Issue Year: 22/2016
  • Issue No: 1
  • Page Range: 19-41
  • Page Count: 23
  • Language: English