A Navigation Through Value Accounting Methods

Detalles

This new paper, published by the Value Accounting Network (VAN), guides users through the various value accounting methodologies to help them find the right mix for them. It recognizes the need for coherent but different approaches as needed and aims to clarify the process of selecting methodologies and increase the adoption of value accounting.

The NPV network defines value accounting as: "The collection, calibration, and use of information about the relative value on which an organization depends, creates, or erodes using common units. This information is used when making decisions for various purposes."

Therefore, value accounting encompasses many different valuation methodologies that you may be familiar with, such as capital assessment and accounting, impact measurement and management, context-based reporting, impact assessment, actual price, actual cost, and actual value.

This paper sets out the objectives of the main value accounting methodologies and the applications for which they are most suitable, as well as their relationship to a general framework expressed in the Protocols on Natural Capital and Social and Human Capital.

It also sets out the main differences and similarities in a number of aspects related to value accounting and capital valuation methodologies. It should be noted that the approach and breadth of methodologies evolve rapidly to adapt to market needs.
This document is not intended to provide a classification of methodologies, but rather to be a reference tool to identify the right approach for different users.