The following information was submitted:
Transactions: INTERNATIONAL JOURNAL of MATHEMATICAL MODELS AND METHODS IN APPLIED SCIENCES
Transactions ID Number: 19-891
Full Name: Bohuslava Knapova
Position: Senior Lecturer
Age: ON
Sex: Female
Address: University of Economics Prague, Department of Management Accounting, W. Churchill Square 4, 130 67 Prague 3
Country: CZECH REPUBLIC
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E-mail address: knapova@vse.cz
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Title of the Paper: EBIT Criterion: Financial Analysis' Issues
Authors as they appear in the Paper: Bohuslava Knapová, Tomáš Krabec, Jaroslava Roubíèková
Email addresses of all the authors: knapova@vse.cz; krabec@is.savs.cz; roubicko@vse.cz
Number of paper pages: 9
Abstract: Paper delivers an elaboration of various approaches towards profit composition and its use and interpretation in financial analysis and business valuation. By focusing on the mutually incompatible needs of different stakeholders we try to prove that a comparison of performance indicators based on financial statements derived from the framework of US GAAP, IFRS or Czech national regulation is misleading. On an example of the category of profit called EBIT which is a widely used performance criteria in mainstream Anglo-Saxon text books on corporate finance, financial analysis or business valuation, we explain that whereas the „real EBIT" is based on the cost structure defined by function, the „Czech EBIT" derived from an income statement based on cost structure defined by nature are not compatible in terms of their interpretation. In the end we conclude the main issues users and authors of financial analysis have to face by trying to apply „Czech EBIT" in various mai!
nstream models of financial analysis and business valuation.
Keywords: EBIT, business valuation, Balance Sheet, Income Statement, Budget Income Statement, external and internal users, financial analysis.
EXTENSION of the file: .pdf
Special (Invited) Session: Is EBIT the Right Performance Measure for a Private Czech Company?
Organizer of the Session: 202-137
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