Productomschrijving
In 2005 all publicly-listed European firms will be obliged to present their financial results using the 'fair value method'. Traditional accounting practices will be replaced by a new methodology in which market values play a prominent role. It is expected that the importance of market values will continue to increase even further in the more distant future. Firms, investors, analysts and other interested parties think much more in terms of (expected) cash flows and risks now. Traditional profit-based thinking is slowly but gradually replaced by this new approach in which the combined analysis of expected cash flows and risk translates into the 'value' of the firm (or an individual investment project). The increased uncertainty levels in the financial world have led to a substantial change in financial management practice. Financial managers take decisions that have a direct impact on the firm's expected future cash flows and/or the risk levels associated with these cash flows.
