Excess Income Capitalization Method

This method is based on the concept of income that a company's productivity is the result of the assets owned by both tangible and not tangible. Any excess returns earned returns above normal (normal return) on the tangible assets, is regarded as the return of tangible assets are not collectively. 

The report profit and loss that is used is: a report of operating profit and loss last year; reports profit and loss 12 (twelve) months; average of at least five (5) last year, or next year projection is believed to represent the ability real companies that can be maintained in future. and then made adjustments reports profit and loss in accordance with the principles and procedures of adjustments, to obtain the return of normal operations of the company votes. 

Rating return tangible assets and obligations must be done in accordance with the regulations on the method PAB. 

The calculation: net tangible asset value (NTAV); normal rate of return in percentage for NABB; return reasonable amount (in rupiah) to NABB; or done on the basis of financial reports that have been evaluated or re-adjusted. 

return reasonable level of NABB obliged to comply with the risk inherent with NABB and return level reflects the average cost between equity and debt costs in accordance with the capacity NABB in obtaining a loan (borrowing capacity). 

Income normal economic or profit to be reduced by up return reasonable NABB reflect economic income can be maintained in the future. Difference between income and economic normal return top NABB is return on tangible assets. 

Conversion of surplus value to be no tangible assets as a whole (going concern value), is done by using the level of capitalization in accordance with the risks inherent up with tangible assets not consider: the nature of business; management; market position the company, the company's reputation; consistency of economic income produced, and consistent customer base the company. 

Cost of equity earned by adding value is not tangible assets (going concern value) is to reflect the value of NABB equity (common stocks) as a whole. 

The NABB for return level and the level of capitalization to tangible assets is not disclosed in the mandatory reports Rating Business. 

In the case of the assignment require Valuer Business Rating refers to the results of property assessment by the Property Valuer short resume (highlight) of tangible assets assessment done by the Property Valuer assigned mandatory disclosed.

1 comment:

  1. Anonymous1/04/2009

    nice article, my friend