Accounting, known as economic value added (EVA), met with growing interest, and is described by some as the real key to creating wealth. The main argument in favor of the proposed EVA over ROA is that the former will encourage managers to conduct desirable investment, the latter will be hampered. But EVA, as well as any number derived from the accounting records of the company may depend on the method used to determine the operating income and asset values. A series of examples illustrate how to choose the accounting method can greatly influence reported spacewalks, and that the alleged distortion caused by the specific accounting procedures, perhaps even worse, not better. "Hide
by Edward W. McIntyre Source: Business Horizons 7 pages. Publication Date: January 15, 1999. Prod. #: BH007-PDF-ENG
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