Influence of subsidies in the concept of Czech accounting rules on the valuation of the company

Vliv dotací v pojetí českých účetních předpisů na ocenění podniku

Pavla Maříková and Andrea Sýkorová

Oceňování, 2019, vol. 12, issue 1, 42-63

Abstract: The article analyses the ways in which subsidies are reflected in the accounting data and specifies the locations which may give the valuer distorted information and an inappropriate basis for the valuation of the undertaking. The main implications of the accounting effects of the subsidies on the value drivers and the valuation of the enterprise are explained in the text. The most important risk is overvaluing the company's profitability and undervaluing its assets. The results of the analyses are the proposals for adjustments to the accounting data and their transfer to an economic model and other proposals of recommendation on how to handle subsidies in the valuation of an undertaking.

Keywords: Value; business valuation; subsidy; financial statements; Hodnota; ocenění podniku; dotace; účetní výkazy (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.18267/j.ocenovani.226

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