Acta Univ. Agric. Silvic. Mendelianae Brun. 2013, 61, 867-872
Published online 2013-07-13

The problem of accounting methods in connection to company valuation

Michaela Beranová

Department of Business Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

Valuation of a company is not only a calculation but it represents complex set of processes which are mutually interconnected and which are more or less important in the process of company valuation in dependence of the value category inquired. One of these processes is the financial analysis which objective is not only to prove, subsequently the strategic analysis, going concern of a company, but its outcomes are the starting-point of financial plan preparation that is needed in order to apply income-based methods of company valuation.
It is generally accepted that results of financial ratios differ in implications of applied accounting methods. The objective of this paper is to frame an influence of accounting methods on the income-based value of a company while the stress is put on the methods of inventory measurement in the context of both, in context of the Czech accounting law as well as of the International Financial Reporting Standards.


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