Evaluation and assessment of an enterprise types
Assessment of an enterprise is usually done in one of the following cases:
• regular in the balance sheet (an assessment of the property);
• change in capital structure (divisions, donations, acquisitions and disposals of shares, etc.).
• Company listing on the stock exchange;
• capital increases;
• in case of merger or takeover;
• the purpose of winding up of companies or work-related reasons.
Types of assessment varies according to the following criteria:
a) After the nature of evaluation: evaluation of goods, valuation of intangible elements (bachelor, working capital), evaluation of assets or companies.
b) After the purpose of assessment: economic evaluation carried out by measuring the economic capacity to make profit, administrative assessment, based on special rules for determining the weight of taxation, accounting assessment.
c) After the beneficiary assessment: direct beneficiaries (the firm), the indirect beneficiaries (banks and financial institutions, public institutions, courts, individuals).
The assessment involves the preparation phase followed by diagnostic analysis and assessment of the company itself.
Prepare operation is in contracting work assessment with the assessor and obtain preliminary information to it. Evaluator assessment contract ends after the beneficiary undertake now making a first contact by requesting detailed information on the technological process, condition and age of buildings and equipment, opportunities for expansion, fixed assets, purchasing and sales markets.
Based on this information to prepare a preliminary report which are highlighted in establishing enterprise development, organizational and functional structure of the enterprise, the enterprise market position, field of activity. Preliminary report serves as a starting point in conducting a diagnostic analysis of the company to identify strengths and weaknesses, how to recovery
the existing situation, improve performance.
Adequate estimate of property value and competent analysis of other aspects of the properties leading to sound decisions concerning the provision and use of property.
Persons responsible for assessing property appraisers are appointed and they are organized into associations. In Romania there are two associations which have the objective and real estate valuation, which is the Body of Expert Techniques and Appraisers National Association of Romania.
Evaluation is the process used to express the cash accounting method for all existences and to changes in the property and is issued an opinion or conclusion based on a thorough analysis on the nature, quality, value or usefulness of certain property expressed by an impartial person specializing in analyzing and evaluating properties.
The evaluation process consists of a coherent and orderly set of procedures that have as result the estimate.