Affiliation:
1. Faculty of Computer Science and Management , Wrocław University of Science and Technology , Poland
2. Institute of Spatial Management , Wrocław University of Environmental and Life Sciences , Poland
Abstract
Abstract
Real estate development investments are characterized by a high value of projects, which in the event of irregularities in their implementation may result in significant losses for the economy. The lack of tools enabling ongoing control of real estate developers may result in disruptions in the operation of business entities on the real estate market, affecting the proper functioning of many stakeholders. The article proposes a method of measuring value for real estate companies. Accounting principles that regulate financial statements specify that they cannot be used directly to measure the value of a developer. The article proposes examples of corrections to financial statements supporting value measurement. When calculating value management measures, (i) adjustments excluding the impact of asset valuations, (ii) adjustments of settlement negative EVA of the investment phase, (iii) adjustments of advance payment of NPV of the project, and (iv) adjustments of excluding the impact of interest on foreign capital should be made. Examples of using these adjustments in a short-term housing project and a long-term commercial project were presented. The impact of the proposed adjustments on the comparison of formal financial statements and value measures for a large developer listed on the WSE was also discussed.
Reference35 articles.
1. Kyriazis, D., & Anastassis, C. (2007). The Validity of the Economic Value Added Approach: An Empirical Application. European Financial Management, 13(1), 71–100. https://doi.org/10.1111/j.1468-036X.2006.00286.x
2. Copeland, T., Koller, T., & Murrin, J. (2000). Valuation: Measuring and managing the value of companies (3rd ed.). John Wiley & Sons.
3. Biddle, G. C., Bowen, R. M., & Wallace, J. S. (1999). Evidence on EVA. Journal of Applied Corporate Finance, 12(2), 69–79. https://doi.org/10.1111/j.1745-6622.1999.tb00008.x
4. Bieda, A. (2017). Urban renewal and the value of real properties. Studia Regionalne i Lokalne, 69(3), 5–28.
5. Broża, N., Birnbaum, K., Castro, D. G., & Kazak, J. K. (2020). Spatial Absorbency Assessment for Sustainable Land Development. Geomatics and Environmental Engineering, 14(2), 5–18. https://doi.org/10.7494/geom.2020.14.2.5
Cited by
4 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献