How can Economic Value Added (EVA) statements be used to improve Essay - 2

How can Economic Value Added (EVA) statements be use to emend monetary statement reporting, results, and success What are some problems found with EVA - Essay ExampleMaking fiscal decisions only based on accounting information is a traditional way that can be misleading for the financial managers to make bad decisions. EVA measures are useful for the furrow to make decisions that can divine service the line to grow and help in making future ones. EVA creates the value in the business decisions and financial management.The EVA calculations and statements are drawn by evaluating the value that has been added to the company. It shows how much the business has grown in terms of the price it has. There are many factors that the EVA statements take into consideration to make sure that all the relevant data is considered when measuring the value of the business. It calculates how much the growth of the business is and how much has been invested for that growth. It takes out the net be nefit that the business has gained and in regard of that cost that has been put in for that benefit (Grant, 2003).The EVA statements allow the business to take decisions about those projects that have to be accepted by the business. EVA statements would accept those projects that give the business a chance to take in growth and that add to the value the business. However, the financial managers will not accept those projects that seem to bring slight benefit to the business and its value, no matter how much financial gain that project whitethorn bring. Although it may seem that the EVA statements neglect the financial figures, the concept is simple which suggests that decisions should be taken on account of the businesss financial health, and not taking those decisions that may financially hurt the business.EVA statements are greatly used to improve the businesss financial statement reporting, results and the future success. It allows the business to take decisions that are hono rable for the business financial position. Moreover, it allows the financial managers to evaluate the financial results in relation to