One Significant Advantage of Economic Value Added (EVA)is That It

question 47

True/False

One significant advantage of economic value added (EVA)is that it clearly states what specific actions managers should or should not take in order to improve financial performance.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

AASB 121

The Australian Accounting Standards Board document that refers to the effects of changes in foreign exchange rates on financial reporting.

Functional Currency

The currency of the primary economic environment in which an entity operates, used in its financial reporting.

Primary Economic Environment

The main economic setting in which a company operates and carries out its operations, often determined by its reporting currency and major market.