1. Improve and perfect the asset evaluation methods in our country
The evaluation method is the core issue of asset evaluation, directly affecting the results of value assessment and the implementation of market transactions. Generally speaking, value evaluation methods can be divided into three categories: cost approach, market approach, and income approach. The cost approach evaluates the value of an enterprise from the perspective of historical cost; the market approach assesses the value of a company from the current market price angle, also known as the market comparison approach; the income approach evaluates the value of an enterprise from the perspective of future earnings.
Enterprise value evaluation, rooted in the modern economy, differs greatly from traditional single-item asset evaluation. It is based on the overall value analysis and value management of enterprises, evaluating the value of enterprises by treating them as operating wholes. For this reason, our enterprise value evaluation must shift from the original static mode to a developmental, dynamic one; we must establish a modern enterprise value evaluation system with the income approach, market approach, etc., as the main focus. In the application of evaluation methods, we should flexibly apply internationally recognized evaluation methods to the practice of asset evaluation in our country according to the requirements of China's laws and regulations, and improve them in practice.