MATERIALITY LEVEL ACCOUNTING UNDER BUSINESS REPUTATION ASSESSMENT BY FUTURE DISCOUNT CASHFLOW TECHNIQUE
Abstract
The described algorithm of the business reputation valuation by the future discount cashflow (DCF) technique allows the justified investment decision-making. The technique is characterized by the computation complexity since a considerable volume of information is required for the model building. It should be noted that in the future discount cashflow model, the business reputation valuation for the investment purpose does not require the computation refinement as business reputation is an intangible asset, and its accurate evaluation is impossible. In this case, the computation simplification considering only essential model parameters is admissible. To conduct a correct comparative analysis of the investment objects, it is necessary to estimate materiality level for each of the compared organisations.
About the Authors
Natalia Anatolyevna Anikina
Don State Technical University. Russia
Russian Federation
Russian Federation
Lyudmila Veniaminovna Myasoyedova
Don State Technical University. Russia
Russian Federation
Russian Federation
References
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Review
For citations:
Anikina N.A., Myasoyedova L.V. MATERIALITY LEVEL ACCOUNTING UNDER BUSINESS REPUTATION ASSESSMENT BY FUTURE DISCOUNT CASHFLOW TECHNIQUE. Vestnik of Don State Technical University. 2013;13(5-6):160-167. (In Russ.) https://doi.org/10.12737/1295
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