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CORPORATISATION AND ASSET VALUATION FOR A GOVERNMENT CORPORATION
Author(s) -
Buchanan John,
Bowman Robert G.
Publication year - 1990
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/j.1468-0408.1990.tb00426.x
Subject(s) - corporation , valuation (finance) , business , accounting , finance , public administration , political science
This paper reports the asset valuation procedures used in the corporatisation of a New Zealand state owned enterprise. Determination of an equitable valuation is crucial to the subsequent (equitable) monitoring of management performance and also in anchoring the expected value of the business in the wake of privatisation. The process used to arrive at the asset valuation consisted of two distinct stages: methodology choice and implementation. The separation of the two steps was an important factor in reaching a speedy and well received valuation. The process is discussed in some detail. The result was a valuation derived from a theoretically sound base (i.e., net present value) yet consistent with more pragmatic commercial realities.