Measure for measure?

Article Abstract:

The ability to create wealth for shareholders is crucial to the survival of companies in today's turbulent business environment. This gives rise to the question of which tools best measure the extent to which shareholder value is being enhance or destroyed. Corporate performance has traditionally been measured in terms of growth in earnings per share (EPS). However, this methodology is said to encourage myopic behavior and to promote the idea that shareholders are a free source of funds. The 'economic profit' (EP) and 'economic value added' (EVA) models have been proposed as more sensible alternatives. The EP/EVA approach is very similar to the 'residual income' concept found in management accounting textbooks. Its advantages and disadvantages are discussed.

Performance, Measurement, Profits, Corporate profits, Value (Economics)

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Best practice, and nothing but the best

Article Abstract:

The Financial Services Act of 1986 changes have are in effect, so corporations need to have their financial disclosure systems organized. The regulations require a written policy on compliance procedures, an annual review of the procedures, and an appointment of a compliance partner. The Investment Business Compliance Manual has been published by the Chartered Accountants of Scotland. The manual covers: client relations; existing and additional record-keeping; managing notification, returns, complaints; training and dealing with staff; corporate finance activities; and all the necessary forms. Compliance must be verifiable by a third party so accurate records are essential. Firms will be audited on a random schedule.

United Kingdom, Laws, regulations and rules, Accounting, Disclosure statements (Accounting), Great Britain

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