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Value-based accounting: A performance analysis of Indian industry
, P Venkata vijay Kumar
Published in IUP Publications
2013
Volume: 12
   
Pages: 7 - 20
Abstract

Value-based accounting has significant impact on financial reporting of organizations. Value-based accounting distinguishes itself from traditional cost-based accounting by including the future outlook. This paper attempts to provide the present scenario of value-based accounting with respect to Indian industries. It also attempts to apply the value-added model in Indian industry to understand the relation of value addition with book value of net profits. It tries to measure the performance of organizations on the basis of different value-based accounting. Using the data of organizations included in the BSE 100 index for the year 2009, the paper identifies the contribution of variables belonging to income and expenses to value addition of the organization through regression analysis. It is found that Economic Value-Added (EVA) of Indian organizations is always lower than the accounting profit. However, most of the organizations in India have positive Market Value-Added (MVA). But the continuance of negative EVA in future would also result in negative MVA.

About the journal
JournalIUP Journal of Accounting Research & Audit Practices
PublisherIUP Publications
ISSN0972-690X
Open AccessNo