【導(dǎo)讀】treatingthepany?equitycapital.

　　

【正文】 l on the group/SBU level ............................................................... 21 4. Calculation of NOPAT on the group/SBU level........................................................................... 21 III. Appendix: Details of EVA calculation A. Improve management decisions by adjusting operating ine and invested capital 1. Selection of adjustments When customising the EVA calculation for XY, the objective was to find the right balance between economic accuracy and functional simplicity and to define a meaningful measure of value creation that is understandable to all users. The process of defining these adjustments focused on: Materiality Adjustments should make a material difference in EVA Motivational Impact Adjustments should have the potential to influence decisions and behaviour Practicality Adjustments should be made subject to data being available Understandability Adjustments should not be unnecessarily plex 2. Goodwill Description of the Adjustment: Goodwill amortisation is not included in NOPAT. The full historic goodwill before amortisation is shown in invested capital. Behaviour Expected/Reason for the Adjustment: Goodwill resulting from an acquisition is an investment that does not definitively increase or decrease in value over time. Therefore, we should consider it a permanent investment rather than an eroding investment that needs to be amortised. Cos t2520151050 1 2 3 4 5 6 7 8 9 10 1 1 12 13 1 4 15 16 1 7 18 19 2 0 21 22 Y earsAm ortisa ti onCa p i tal cha rg e wi tho u t a d j u stm e n tFull char ge without adjustmentCapit al cha r gewit h adj ust m ent If we did not make an adjustment and used the accounting amortisation, the full charge for goodwill would be the sum of the amortisation and the capital charge on the book value. The charge would be at its highest immediately after the acquisition and would decline until the asset is fully amortised。 the total charge would therefore decline to zero. This is not consistent with the pattern of profits we generally see after acquisitions. Typically, acquisitions are performed at a premium and the immediate impact is that the profits are inadequate to cover the capital charge. Over time, synergies are realised and the profits improve, hopefully, to more than justify the capital spent on the acquisition. Thus, if we would base the EVA calculation on accounting amortisation we would put the highest charge when the lowest NOPAT is expected. Going forward, the NOPAT improves while the capital charge declines. This provides a poor matching of costs and benefits. By not amortising goodwill, we get a better alignment of costs and benefits. The adjustment also avoids a major increase in EVA when the amortisation period is finished, an effect that cannot be attributed to the value creation in that specific period. By using historical goodwill, EVA will turn positive as soon as the NOPAT covers the capital charge on the tangible assets and the goodwill before amortisation. This helps to encourage good acquisitions while still discouraging bad ones. Goodwill at XY is pushed down to operating units, except for the goodwill from the acquisition of Company A and Company B, which is only pusheddown to SBU level. By including goodwill in the calculation of capital below group level, the responsibility for the profitability of acquisitions is decentralised. Pushdown accounting brings in line the absolute amount of EVA on group level and on subunit level. Otherwise a negative EVA on the group level might correspond to positive EVA?s on the SBU level. Mechanics of the Adjustment: Do not charge goodwill amortisation to NOPAT and include goodwill in invested capital at acquisition cost in order to treat it as a permanent investment. Example: Capital Calculation: Invested capital 600 + Accumulated goodwill amortisation 60 = Invested capital (adjusted) 660 NOPAT Calculation: Operating Ine 100 + Goodwill amortisation 15 = Operating Ine (adjusted) 115 Operating Taxes (38%) 44 = NOPAT 71 If goodwill is amortised due to an impairment test, the respective amount of goodwill will be excluded from invested capital and treated as an unusual item (see chap. 4). 3. Construction in progress Description of the Adjustment: Construction in progress (CIP) is not included in invested capital. Behaviour Expected/Reason for the Adjustment: In order not to discourage valuecreating new investments, capital charges are not imposed on CIP until it starts operations and is taken out of the CIP account. Managers will be accountable for generating a return once the assets are placed in service. To maintain the consistency between the present value of cash flows and EVA, we need to recognise the time value of this money during construction. Technically, this means that the capital charges for the construction period should be accumulated and capitalised as part of the investment when the asset is in use. However, this is plex to do. For major projects regular financial accounting practices acplish almost the same result, as XY capitalises borrowing costs (pretax cost of interest) in CIP. Therefore, in order to keep the calculation simple, no additional capital charges are capitalised for EVA. For all other construction in progress items, capital charges for the periods during construction are neglected because of materiality reasons. Mechanics of Adjustment: Reduce invested capital by the construction in progress balance. Example: Capital Calculation: Invested capital 600 Construction in progress 30 = Invested capital (adjusted) 570 4. Unusual items