Valuing Operating Assets in Place and Computing Economic Value Added

By Nancy L. Beneda

Value-based management (VBM) has been referred to as the “fastest and hottest ticket” to shareholder wealth. Incorporating such techniques as economic value added (EVA), return on operating invested capital (ROIC), and market value added (MVA), VBM is a complete financial management and incentive compensation system that guides decision-making at every level. Adopting companies use VBM as a guide in financial planning, monitoring, and controlling operations. Full Story

Publisher's Column

New Rules Prevent Duplicated Losses

The U.S. Department of the Treasury has often promulgated regulations on consolidated returns to combat perceived abuses or attempts by taxpayers to circumvent tax legislation. Occasionally, the conflicting interests of taxpayers and the Treasury lead to litigation, and in Rite Aid Corporation (CA-FC, 2001-2 USTC 50,516, 255 F3d 1357, rev’g, FedCl, 2000-1 USTC 50,429, 46 FedCl 500), not only did the taxpayer achieve a decisive victory, but the regulation in question was held by the court to be invalid. Full Story

Reconciling Image with Reality

In our October 2004 issue, an excellent article by Robert L. Bunting (“Transparency: The New Peer Review Watchword,”) presented a refreshing policy position. Bunting, elected last month as AICPA chairman, is firmly committed to reforming the peer review and quality assurance systems and views this as a critical step toward greater transparency throughout the profession. Full Story

Tallying the Cost of the Sarbanes-Oxley Act

Although the Sarbanes-Oxley Act (SOA) was enacted two years ago, some of its provisions are still being implemented. One such provision is SOA section 404, which requires companies to file a management assertion and auditor attestation on the effectiveness of internal controls over financial reporting, starting with fiscal years ending on or after November 15, 2004. Full Story

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