ROIC
R&D Capitalization
According to financial legislation, intangible assets generated during the process of organic growth (including R&D) are not recorded on the balance sheet; instead, they are directly expensed, which […]
Archive
Category: Valuation, Measuring and Managing the Value of Companies – by McK.&Co, T. Koller, M. Goedhart, D. Wessels
Statement Reorganizations
Operating Lease
In accordance with IFRS, almost every leasing contract exceeding one year is recognized as financial leasing. This implies that the contract’s capitalization should occur as assets and liabilities, […]
Statement Reorganizations
Pension Liabilities
In many countries, organizations offer employees pension and post-retirement medical benefits. Such obligations require special attention during the organization’s assessment process. For example, in the United States, companies […]
Statement Reorganizations
Non-Operating Expenses
Profit and Loss Statement and Cash Flow Forecasting When preparing the profit and loss statement and subsequently forecasting cash flows, we encounter expenses that are not directly related […]
Statement Reorganizations
Provisions in Valuation
When evaluating an organization, it is important to correctly understand the pre-accrued expenses and corresponding reserves. Such expenses can be divided into four categories. Each requires a different […]
Statement Reorganizations
Operating Cash Taxes
Operational Taxes and Payment Timing The amount of tax arising from operations is one matter, and the timing of its payment is another. Additionally, in some cases, the […]
Statement Reorganizations
Operating Tax Rate
Forecasting a tax rate is a seemingly simple matter but needs to be detailed as it has a significant impact on the total value of the organization. The […]