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The goal of writing this article is to continue my previous empirical research (Kiss 2015). In the article written in 2015, I dealt with the question, what factors affect the value of the firm? Looking at the entire period (2004 through 2011) I found that all value creators had a significant impact on the dependent variable, on the value of the firm. Earnings before interest and taxes (EBIT), reinvestment, invested capital, return on invested capital, profit margin, sales growth rate had a positive impact on the value of the firm, while tax rate and return on assets at market value (MROA), had a negative impact. In this research I am seeking an answer if any changes occurred, when analysing the role of factors affecting the value of a business, in these factors and their importance, in the period under review. In my paper I present the primary objective of a firm, its possible approaches, while I shall also deal with the concept of dual value creation. Then I outline the dimensions of value, by reviewing the relationship of consumers’ value and shareholder value. Shareholder value is a relevant value category concerning the article, therefore I address its detailed characterization and firm theory background. The structure of the study is the following. First I review the value creation process based on literature from the most prominent academic authors. In the next part I describe the primary objective of a firm, then the various dimensions of value and the firm theory background of shareholder value. Then I move to the value creators, which I am going to use in the empirical study. Finally I introduce the research, and in the last part I formulate my conclusions.

The purpose of writing this article is to present the company’s value creation process, on the basis of the work of authors relevant to the subject. This study introduces approaches to understanding the basic objectives of the company, including the concept of dual value creation. Following this, I outline different dimensions of value, and describe the relationship between consumer value and shareholder value. From the perspective of the study, a relevant category of value is shareholder value, and this is given a detailed characterization and classification. The article is organized as follows. First, the value creation process is reviewed on the basis of work by the most prominent authors in the theoretical literature. In the following section I describe the company’s main goal and the different value dimensions. I then turn to the characterization and categorization of firm value. Finally, in the last section I formulate my conclusions, in accordance with the works of authors I have studied, that the source of the firm value is derived from its operations itself, i.e. from the company’s activities.

This paper focuses on the main tools and techniques of firm valuation. One of the objectives in this paper is to present the reasons for such differences in value across different models, and to help in choosing the right model for a specific task. In today's management literature there are a lot of evaluation models, which based on the different approaches. The most important dimensions in the evaluation are the past performance analysis, the current value of the firm based on the forecast period and the appraisal of future opportunities. Nowadays it is quite problematic that these concepts regarding the valuation methods used in practice are not homogeneous. In view of the major principles is equal, but the details are different. In this paper my goal is to categorize the methods in the right section and to demonstrate the characteristics, advantages and disadvantages as well. This study proceeds as follow. The first section classifies and categorizes the different valuation approaches, which are the ratios based on accounting data, the asset-based approach, the income-based approach within the discounted cash flow models and the value added methods, the relative valuation, at last the real options. The second part presents the main features and implementation of the methods. Finally, the third section concludes what might be learned from this study. Based on the related literature reviewed and my previous researches I conclude that, in the evaluation, the problem is not that there are not enough models to complete the task but on the contrary, the selection of the appropriate model is the first challenge in the work. The different approaches lead to significantly different values. The other main finding of this work that, professionals involved in the assessment task explained the reason for the differences, and selection the correct model which is the best fit for the job. Considering the models described below a best model cannot be identified. This study also concludes that selecting the applicable model depends on the current situation and characteristics of the company or assets.

The measurement of the corporate’s performance; efficiency and effective use of resources has an increasing role nowadays. In a globalizing and strongly competitive market environment the adequate, up-to-date, reliable and accurate information is inevitable for the companies in order to operate efficiently. Accounting is a part of corporate information system that’s primarily objective is to capture the economic changes and to present their effect on the wealth and income of the companies. The performance of companies is interpreted in many ways and there is an extensive literature that discusses performance measurement and depending on the objective and the interested parties there are several methods from simple indicators to the more complicated models. According to the most frequently used definition, performance measurement is the measurement process of the effectiveness and efficiency of activities (Neely et al., 1995). Based on the accounting information of the companies many performance indicators can be shaped that could be useful benchmarks. The companies listed on the stock exchange must put special emphasis on the measurement of their performance and its presentation in the financial statements compared to the non-listed companies as the investor’s primary aim is to maximize the returns on their investments. The national level regulations in this area are not unified; hence the comparison of companies is problematic. The listed companies must present their financial statements in accordance to the International Financial Reporting Standards (IFRS). The standard boards realized the lack of comparability as a result of the non-unified performance measurement. Their opinion is that earnings per share (EPS) is a comparable indicator and shows a consistent picture about the earnings of the companies so in 1997 they issued the IAS 33 ‘Earnings per share’ standard. The IAS 33 provides a standardized method to calculate the EPS that is able to inform the investors reliably about their earnings on their shares. In this study our aim is to introduce the theoretical framework of the standard issued by the International Accounting Standards Committee (IASC), the present the calculation methods of the basic and diluted EPS indicators. We will also the practical application of the method by analysing the financial statements of the 30 companies of the Deutscher Aktienindex (DAX). The current study focuses on the method of performance measurement supported by the IASB that alleviates the comparison of companies and not identical with the performance measurement methods used in the discipline of finance.

Assessment is one of the most debated areas in accountancy, since the choice of valuation procedures, methods directly influence an entity’s financial situation, alterations and performance. The applications of International Financial Reporting Standards are mandatory for quoted companies in the EU since 2005. In my study/paper I deal with a specifically treated area of accountancy, the regulation of goodwill’sevaluationin the IFRS system. Since this area is jointly regulated by several standards, my goal is to provide a comprehensive view of standards regarding the evaluation of goodwill, their consistency paying particular attention to the hypothetical approaches and evaluation philosophy of IAS 36 Impairment of Assets standard. Since goodwill acquired in a business combination does not represent independent cash flow from other asset and group of asset, therefore its valuation requires specific accounting treatment. Standards determine the concept, the criteria for recognizing, the rules applied in initial measurement of goodwill, and later the limits of the impairment to be recognised derived from the subsequent period’sprice reduction of the goodwill and the related tax effects. My thesis detailsa specific set of concepts, which is connected to the determination of thegoodwill’s value. Itincludesthe concepts of cash generating unit, recoverable amount, value in use and fair value less costs to sell. I give full details about impairment test, as a particular evaluation procedure, I introduce the internal and external source of information, which show evidence that the asset may be impaired, I also consider deferred tax effects resulted from the evaluation of goodwill and the identification of effects influencing the performance of the entity. Subsequently, I introduce the specific regulation of the goodwill’s evaluation with the help of corporate examples. Having analysed the IFRS reportsof three multinational companies, with different businessactivities, quoted in Budapest Stock Exchange I describe the corporate regulation in connection with the goodwill’sevaluation, the effects of the factors applied in the impairment test and the scenario analysis made by enterprises. Due to the characteristics of goodwill’sevaluation, it is a complex and complicated accounting procedure, which is considerably based on the estimations of the management, which comprises considerable uncertainty. Having used the financial data of the selected entities operating in different areas, I demonstrate what kind of specific indicators are used to determine the value of their cash generating units and which risks are being considered during the estimations.