| Statuss(Aktīvs) | Izdruka | Arhīvs(0) | Studiju plāns Vecais plāns | Kursu katalogs | Vēsture |
| Course title | Evaluation of Enterprises |
| Course code | Ekon5076 |
| Credit points (ECTS) | 3 |
| Total Hours in Course | 81 |
| Number of hours for lectures | 16 |
| Number of hours for seminars and practical classes | 16 |
| Independent study hours | 49 |
| Date of course confirmation | 18/12/2018 |
| Responsible Unit | Institute of Economics and Finance |
| Course developers | |
| Dr. oec., asoc. prof. Gunita Mazūre |
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| Prior knowledge | |
| Ekon2109, Macroeconomics Ekon3091, Management Accounting Ekon4102, Financial Accounting Mate2023, Mathematics for Economists VadZ3029, Analysis of Economic Activities |
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| Course abstract | |
| Valuation of an enterprise is one of the most significant processes related with the change in the structure of the company owners. Therefore, the course helps understand the value forming factors and opportunities for increasing the value, the valuation process, types and components and basic principles of the valuation report as well as it introduces with the valuation of intangible assets and real estate. The students acquire essential knowledge on the valuation approaches and methods which allow choosing the most appropriate ones considering the value affecting factors as well as the fundamentals of the valuer’s code of ethics. | |
| Learning outcomes and their assessment | |
| Kursa rezultāti un to vērtēšana / Learning outcomes and their assessment1.Knows and understands the evaluation process, approaches and methods. Knows the content of the information describing the company operation and the purpose of evaluation. Knows the process of brand development and value determination - independent work.
2.Knowledge of information reliability, types of values and factors affecting the value - discussion in class. 3.Knowledge and understanding of money value in time, calculation of interest and discount rates - test with calculations. 4.Knowledge of business valuation using three valuation approaches and methods: asset-based approach, market value approach and earning value (income) approach - test with calculations. 5.Able to determine the value of money over time and calculate company value using a variety of approaches and methods. Students are able to analyse the results, understand the causes for value changes and draw conclusions. Understands the process of valuation of intangible assets, is able to determine the cadastral value of real estate - tests with calculations, calculations in classes. 6.Able to solve various tasks independently, cooperate in a group with colleagues to get the information they need and produce a report identifying the value of the company and incorporating opportunities to increase the company value - independent work, group work, discussion in class. 7.Students are able to present the process of determining the value of a company and justify it as well as create a presentation on brand - independent work, group work, presentation. 8.Able to plan tasks responsibly - independent work. 9.Able to engage and take responsibility for group performance and analysis. Students are able to present the results of independent work - group work, presentations. 10.Ability to apply the acquired theoretical knowledge and practical skills in business valuation methods, understanding their advantages and disadvantages as well as the peculiarities of application of valuation methods, taking into account the specific type of commercial activity and business environment - independent work, group work, tests, presentations. |
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| Course Content(Calendar) | |
| Full-time studies:
1.Importance and necessity for company valuation, company values, their types and valuation goals (lectures – 2 h) Necessity for enterprise valuation. Evaluation process, subject, object and objectives. Enterprise values, their types depending on the valuation situation 2.Standards regulating the valuation of enterprises (lectures – 1 h) International Valuation Standards. European Valuation Standards. Latvian National Valuation Standard. Methodological guidance. 3.Principles of valuation of enterprises (lectures – 1 h) Valuation principles based on owner’s perceptions. Principles based on the use of property. Principles defined by the market environment. 4.Evaluation stages and compulsory components of assessment report (lectures – 2 h) Evaluation procedure. Types of evaluation reports. Mandatory components of the valuation report. 5.Value of money in time. The essence of discounting (lectures – 1 h, practical work – 3 h) Calculation of simple and compound interest. The essence of discounting. Calculation of simple and compound discount. Test 1 – calculations of interest and discount – 2 h 6.Analysis and correction of the company's financial statements (lectures – 1 h, practical work – 1 h) Methodology of financial analysis. Calculation of financial ratios and interpretation of results. 7.Approaches and methods of company valuation (asset-based approach. market value approach, earning (income) value approach) (lectures – 5 h, practical work – 5 h) Methods of enterprise valuation and description of their application cases. Advantages and disadvantages of valuation approaches and methods. Test 2 – determination of a company value – 2 h 8.Intangible assets, their role in the value structure of a company (lectures – 1 h, practical work – 1 h) Classification of intangible assets. Trademarks, brands, licenses and patents. 9.Methods of valuation of intangible assets (lectures – 1 h, practical work – 1 h) Intellectual property valuation. 10. Real estate valuation (lectures – 1 h, practical work – 1 h) Cadastral valuation. Approaches and methods in real estate valuation. Part-time studies: All topics specified for full-time attendance are implemented, yet the number of contact hours is 1/2 of the specified number of hours for full-time studies. |
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| Requirements for awarding credit points | |
| 1.Calculation of simple and compound interest. Calculation of simple and compound discount – test with calculations (20%).
2.Company valuation using three valuation approaches and methods: asset-based, market and earnings – test with calculations (20%). 3.The process of creation, development and value of the chosen brand - team work (15%). 4.Activity in classes (5%). 5.Exam - evaluation of the selected company, which includes the characteristics of the company and the industry, the value of the company and the opportunities for the increase of value – group work (examination task) - (40%). |
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| Description of the organization and tasks of students’ independent work | |
| Getting ready for practical assignments and presentation of the selected brand. Individual or group assessment of the selected company presenting the company value. | |
| Criteria for Evaluating Learning Outcomes | |
| Each assignments is graded. The evaluation of the study course depends on the evaluation of independent and practical assignments (tasks), 10% corresponds to one point on a 10-point assessment scale. Rewriting of tests and re-defending of presented tasks is not provided. | |
| Compulsory reading | |
| 1.Saksonova S. Uzņēmumu (biznesa) vērtības noteikšana: nepieciešamība un galvenās pieejas. Rīga: Tehnoinform Latvia, 2022. 197 lpp.
2.Zariņa V. Saimnieciskās darbības novērtēšana, izmantojot finanšu analīzi. Rīga: Lietišķās informācijas dienests, 2023, 87 lpp. 3.Damodaran A., Damodaran on Valuation, 2nd edition. USA: John Wiley &Sons, 2006, p. 696. 4.Finanšu vadības rokasgrāmata (red. V. Jerošenko). Rīga: Dienas Bizness, 2019. 5.Kurjanovičs V. Biznesa novērtējums: metodika un organizācija. Rīga: Merkūrijs Info, 2010, 189 lpp. 6.Uzņēmuma darbības novērtēšana. Harvard Business Review. Rīga: SIA „Lietišķais informācijas dienests”, 2008, 179 lpp. 7.Shanon P.P., Niculita A.V. Valuing the Business, 5th ed. USA: The McGraw-Hill, 2008, p.1098. |
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| Further reading | |
| 1.Saksonova, S. Finanšu informācijas un pārskatu praktiskā izmantošana uzņēmumu finanšu lēmumu pieņemšanā. Rīga: Info Tilts, 2015, 313 lpp.
2.Freibergs J., Žuromskis V. Nekustāmā īpašuma vērtēšana (teorija un prakse). Rīga: SIA ,,Eiroeksperts”, 2013, 347 lpp. 3.Januška M. Firmas ekonomiskā stāvokļa analīzes metodika. Rīga: ZKC SIA „Inovācija”, 2002, 40 lpp. 4.Keith A. Allman K.A. Corporate Valuation Modeling: a Step-by-step Guide, N.J.: John Wiley, 2010, p. 304. 5.Koller T. Valuation: Measuring and Managing the Value of Companies. 6th edition. Hoboken, N.J.: John Wiley & Sons Inc., 2015, p. 825. 6.Vērtētāju ētikas kodekss, Latvijas īpašumu vērtētāju asociācija, 2006. 7.Glen A., Deborah L. Corporate Financial Management, 6th Edition, Pearson education, 2019, p. 1128. |
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| Periodicals and other sources | |
| 1.Dienas Bizness / Dienas Bizness: nedēļas laikraksts: Latvijas biznesa avīze. Rīga: Diena: Dagens Industri, 2005.
2.Forbes / žurnāls. Rīga: SK Media, 2010. ISSN 1691-6018.Business Week / nedēļas izdevums. Business Week [tiešsaiste]. Bloomberg L.P. Businessweek ISSN 0007-7135. Pieejams: https://www.bloomberg.com/businessweek. 3.Financial Times / laikraksts. Financial Times [tiešsaiste]. England based finance newspaper. London: The Financial Times Ltd. Pieejams: http://www.ft.com/home/europe. |
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| Notes | |
| Restricted elective study course for the specialisation direction “Accounting and Finance” of the academic Bachelor study programme “Economics” | |