Description

Provision of financial diagnostic, profit and cost review used in securitization transactions, structured asset leasing and project finance transactions.

How Can Companies Build World-Class Sustainable Business Models? One Way Is To Transform The Way In Which Business Value Is Measured And Reported, And Management Accountants Play An Integral Role In This.

Current financial reporting models don’t offer accurate valuations. Change the way in which companies are valued, and this could reset business and investing mindsets from focusing on the short-term to prioritizing long-term sustainability instead.

“There is a dramatic shift in the way corporate entities are valued and quantified. In the 19th century, corporate value was defined by what was set out on the balance sheet. Today, most of the valuations on market indices are off-balance sheet or not measured.”

According to research by intellectual capital equity firm, Ocean Tomo, in 1975 a total of 83% of the market capitalization of companies in the Standard & Poor’s 500 index was accountable from tangible assets. This had fallen to 68% by 1985, 32% in 1995 and 19% by 2009.

Why are firms still placing so much emphasis on financial value?

“For too long there has been a fixation on short-term financials, short-term reporting and short-term gains. What we all really need to see is a focus on long-term goals, long-term planning and long-term results.”