PROBLEMS OF THE BUSINESS VALUATION

• Main Authors: Оксана Александровна Ахмадеева, Ирина Александровна Кошкина
• Format: Article
• Language: English
• Published: Science and Innovation Center Publishing House 2014-05-01
• Series: Sovremennye Issledovaniâ Socialʹnyh Problem
• Subjects: Appraisal Practice, Appraisal, Valuation, Value-Based Approach, Object of Valuation, Business, Business Enterprise, Enterprise, Value, Business Enterprise Value, Asset Based Approach, Income Approach, Market Approach
• Online Access: http://journal-s.org/index.php/sisp/article/view/1779

<p>In Russian conditions, the use of business valuation is accompanied by a number of problems, not only as an obligatory component a legal transaction, but also for the purpose of making management decisions. Ambiguity of interpretation of some key concepts, such as business and the enterprise, cost and value can lead to problems of methodological and applied character. Definition of the concepts of business and enterprise are important to identify the object of valuation and management. Definitions of cost and value are important for setting management objectives and for development of a methodology for assessing business. The concept business isn't defined in the Russian legal framework, and concept definition the enterprise doesn't open all aspects of this economic system. Value remains to one of the most controversial and contradictory concepts, its nature is explained differently. There are many different definitions of value. The existing methodological base of determination the value of business for management has a number of shortcomings: high labor input, complexity of identification of  account and assessment of some value creating factors, the limited use of existing assessment methods for certain types of companies and situations, complexity and high probability of errors of forecasting, a problem of coordination of results. Further development of the adapted methods  of an enterprise assessment for value management is required.</p><p><strong>DOI: <a href="http://dx.doi.org/10.12731/2218-7405-2014-2-23">http://dx.doi.org/10.12731/2218-7405-2014-2-23</a></strong></p>