Valuation Problem Research Articles

Qualifying Assets as Strategic Intellectual Potential for Innovation Development of the EAEU

It has been noted that in the legislative acts of the United States and the European Union, clauses have appeared indicating an intensification of the process of assessing qualifying assets, which has never happened in history. Naturally, this extraordinary step raises the need to identify the reasons motivating this phenomenon. A logical assumption has been made about the existence of a connection between this event and an attempt to create countermeasures on the part of the US leadership to the threat of the fall of the dollar as an international currency.Aim. Such a large-scale assessment exercise is considered from the point of view of its enormous potential economic effect and is proposed for use, but in the direction of a completely different goal — the development of proposals not only and not so much for the assessment of qualifying assets, but for the use of this assessment as a stimulus for economic growth and growth in the well-being of workers within the EAEU member countries.Tasks. Investigation of the proposed qualifying asset valuation exercise. Conducting an analysis of problems associated with the widespread practice of taking into account valuations in the authorized capital of enterprises of the EAEU member countries.Methods. A systematic approach to studying the problem of valuation and accounting of qualifying assets. Study and analysis of many years of world experience in the problems of practical assessment of human capital and capitalization of intellectual property in Russia and abroad.Results. The way to use the assessment of qualifying assets and accounting in the authorized capital of enterprises is shown in the interests of accelerating their joint innovative development of the EAEU member countries, as well as stimulating and increasing the importance of education and living standards in general.Conclusions. The process of assessing and accounting for qualifying assets in the authorized capital of an enterprise, in principle, as a progressive phenomenon, is inevitable, it is only a matter of time. For the EAEU member countries, the introduction of this process into practice will accelerate their innovative development and increase the social significance of higher education. Similar conclusions should be extended to the BRICS and SCO member countries.

МЕХАНІЗМ ФОРМУВАННЯ КОМЕРЦІАЛІЗАЦІЇ ОБ’ЄКТІВ ІНТЕЛЕКТУАЛЬНОЇ ВЛАСНОСТІ: БЕЗПЕКОЗНАВЧІ КОНТЕКСТИ ОРГАНІЗАЦІЇ УПРАВЛІННЯ

In modern conditions of martial law, one the most important aspects of ensuring the effective functioning of business structures, as well as the formation of positive results its financial activity, is the existence of an effective security system for the commercialization of intellectual property objects, which will ensure business protection from threats. Protection is due to the ability of management bodies the business structures at the appropriate levels: to ensure sustainable economic development through the protection of intellectual property objects; to neutralize the negative impact of crisis phenomena on business structures; to form an adequate accounting system of financial flows and to strengthen the operational efficiency of control system in the process commercialization of intellectual property objects; ensure the implementation of work on the protection of the confidentiality of information constituting a commercial secret etc. Modern scientific research points to the fact that without a unified security system of business structures regarding the commercialization of intellectual property objects, it is impossible to find a way out of the crisis, stabilize the economic situation and create an effective mechanism for conducting business. The main components of the organizational and economic mechanism of commercialization of intellectual property objects at enterprises, which, in particular, include organizational processes; processes of technical and economic substantiation; processes of determining the market conformity of intellectual property objects to the needs of consumers; legal enforcement processes. Only the processes of determining the market suitability of intellectual property objects to the needs of consumers, that is, the processes of market research, are directly related to the process of commercialization. The other three components of the mechanism of commercialization of intellectual property objects are no less important, as they ensure the effective implementation of the actual process of commercialization or transfer. As the research results showed, the main influencing factors in the context of security science on the commercialization of intellectual property objects are: regulatory and legislative problem; the problem of valuation of intellectual property objects; personnel problem; the problem of organizational support for the commercialization of intellectual property objects. Therefore, the development of the organizational and economic mechanism of commercialization of intellectual property objects is a necessary and integral part of building a national innovation system aimed at increasing the competitiveness of the national economy and ensuring the transition to sustainable economic growth and strengthening of national security, including. Thus, the choice of the most acceptable method of commercialization should be justified from the point of view of the expected profit that it can bring to the owner of the rights in specific conditions.

Prioritization of the IT Sector in the CEE Stock Markets: Investment Policies, Trends and Hidden Gems

Objective: The main purpose of the research is to show that the Central and Eastern European (CEE) market is an essential component of the global stock market. It displays similar patterns to developed countries, and there is a special emphasis on information technology. Research Design & Methods: The study is supported by various machine learning methods and economic analysis, in addition to using Python and R packages. In order to gain a more comprehensive insight into the developments in CEE-region trends, the paper considers a comparative portfolio that focuses on German business, and there is a simulation of the incorporation of the Ukrainian IT sector. Constructing a business strategy in accordance with the Fama–French approach is boosted by incorporating neural networks. Findings: An examination of the performance of Czech, Polish, and Hungarian firms on the stock exchanges suggests that the investment policy oriented towards software is a reasonable choice. The results yielded by the IT companies unmistakably reveal the substantial benefits of their stock market ventures, as well as indicating the ongoing trend of investor reliance. The problem of IT business valuation is highlighted as one of the pitfalls of investing. Implications & Recommendations: The research proposes that maintaining a priority focus on IT, even in challenging circumstances, ensures steady regional advancement. Contribution & Value added: This research brings a unique emphasis to the status and outlook of the IT sector, contributing to the existing toolkit, even in the face of repeated crises.

Efficient valuation of variable annuities under regime-switching jump diffusion models with surrender risk and mortality risk

We present an efficient valuation approach for guaranteed minimum accumulation benefits (GMABs), guaranteed minimum death benefits (GMDBs), and surrender benefits (SBs) embedded in variable annuity (VA) contracts in a regime-switching jump diffusion model. We incorporate into the contract the risks of mortality and surrender, with these events generally monitored discretely over the life of the policy. Using a combination of the continuous-time Markov chain (CTMC) approximation and the Fourier cosine series expansion (COS) method, we determine that the valuation problem can be resolved within a regime-switching jump diffusion framework. Extensive numerical experiments showcase the efficiency of the proposed method, which proves to be more advantageous when compared to existing approaches like Monte Carlo (MC) simulation. The thorough analysis explores how model parameters affect the valuation outcomes.

On the complexity of inverse bivariate multi-unit assignment valuation problems

Inverse and bilevel optimization problems play a central role in both theory and applications. These two classes are known to be closely related due to the pioneering work of Dempe and Lohse (2006), and thus have often been discussed together ever since. In this paper, we consider inverse problems for multi-unit assignment valuations. Multi-unit assignment valuations form a subclass of strong-substitutes valuations that can be represented by edge-weighted complete bipartite graphs. These valuations play a key role in auction theory as the strong substitutes condition implies the existence of a Walrasian equilibrium. A recent line of research concentrated on the problem of deciding whether a bivariate valuation function is an assignment valuation or not. In this paper, we consider an inverse variant of the problem: we are given a bivariate function g, and our goal is to find a bivariate multi-unit assignment valuation function f that is as close to g as possible. The difference between f and g can be measured either in ℓ 1 - or ℓ ∞ -norm. Using tools from discrete convex analysis, we show that the problem is strongly NP -hard. On the other hand, we derive linear programming formulations that solve relaxed versions of the problem.

Investigation of Some Real Estate Valuation Problems in Turkey

The urban population increases after the industrial revolution also increased the commercialization of real estate. In the future, this situation would require being able to determine the real estate values more than before. Today, real estate values are of much greater importance in terms of socioeconomic relations and activities in the world. Establishing a standardized real estate valuation system is among the important duties of public administrations. However, in general, the countries that could not catch up with the industrial revolution in the world and whose industrialization started very late and were not mature enough, could not reach the desired level in terms of real estate valuation. In other words, lagging in industrialization naturally leads to being late and behind in the real estate valuation branch, which is an output of industrialization. The problem created by this situation cannot remain local in today's socioeconomically globalized world. Therefore, the problem affects the whole world and developed countries. In this context, as an example, this study presents the contradictions related to the real estate legislation in Turkey and the application errors in valuation and offers suggestions for the elimination of all these.

Measuring the impact of the embedding effect in contingent valuation studies of cultural public goods: the case of museums

ABSTRACT The embedding effect represents one of the most challenging problems of the contingent valuation (CV) method. The purpose of this study is to address the issue of embedding effect in the context of museums, by estimating the size and extent of the problem. A CV study conducted in Denmark asked respondents to evaluate both the Danish museum-system (inclusive good) and the specific local museum in their municipality of residence (embedded good). Typically, an equal or very close willingness-to-pay (WTP) for the two goods would indicate the presence of an embedding effect. However, we show that this will only be the case for some respondents, while for others the similarity between the two WTP reflects an exclusive interest for the local museum. We demonstrate the existence of these two different types of respondents by using a latent class model where respondents are clustered based on answers to the CV survey. Consequently, the aggregate WTP and the bias associated with the embedding effect are estimated. Our results have implications in terms of the reliability of CV studies and its implementation in actual policy issues, demonstrating that the right questions and techniques will facilitate the separation of ‘true’ answers from biased ones.

A terra rural e seu potencial de desenvolvimento imobiliário

The research focuses on the problem of rural land valuation, revealing the excessive income that the urbanization of rural land entails compared to the development of productive activity. The study refers to a context of an intermediate city with characteristics of aridity and seismicity, recognized as an “oasis city”. This is the case in the Metropolitan Area of San Juan, Argentina, where the phenomenon acquires representative qualities due to its intensity and characteristics. The study intends to identify the real estate valuation processes that affect the availability of agro-productive land. This is a descriptive and relational research design, based on a case study, including fieldwork, semi-structured interviews, and a survey of land supply prices. The research produces scientific evidence about the significant increase in the prices of agricultural land that emerges from its real estate development potential. In this way, the study carried out produces scientific evidence about the differential valuation of expanding areas and the selective behavior of investments. These processes explain the changes generated in land use and urban expansion on agro-productive land.

LOG-NORMAL STOCHASTIC VOLATILITY MODEL WITH QUADRATIC DRIFT

In this paper, we introduce the log-normal stochastic volatility (SV) model with a quadratic drift to allow arbitrage-free valuation of options on assets under money-market account and inverse martingale measures. We show that the proposed volatility process has a unique strong solution, despite non-Lipschitz quadratic drift, and we establish the corresponding Feynman–Kac partial differential equation (PDE) for computation of conditional expectations under this SV model. We derive conditions for arbitrage-free valuations when return–volatility correlation is positive to preclude the “loss of martingality”, which occurs in many traditional SV models. Importantly, we develop an analytic approach to compute an affine expansion for the moment generating function of the log-price, its quadratic variance (QV) and the instantaneous volatility. Our solution allows for semi-analytic valuation of vanilla options under log-normal SV models closing a gap in existing studies. We apply our approach for solving the joint valuation problem of vanilla and inverse options, which are popular in the cryptocurrency option markets. We demonstrate the accuracy of our solution for valuation of vanilla and inverse options. a By calibrating the model to time series of options on Bitcoin over the past four years, we show that the log-normal SV model can work efficiently in different market regimes. Our model can be well applied for modeling of implied volatilities of assets with positive return–volatility correlation.

The valuation of arithmetic Asian options with mean reversion and jump clustering

It is known that the prices of many commodities exhibit mean reversion and are subject to jumps. Particularly, there is mounting empirical evidence that suggests the existence of clustered jumps. In this paper, we consider the valuation problem of arithmetic Asian options under a Hawkes jump diffusion model which captures both the mean reversion and jump clustering phenomena. We compute option prices by means of characteristic functions and Fourier-cosine series expansion. Numerical studies justify the validity and efficiency of our pricing method, and demonstrate the nonnegligible effects of mean reversion and jump clustering on Asian option prices.

Build land price WebGIS with ArcGIS online and ArcGIS API

Building and completing the land price database contributes to completing the land database, promoting digital transformation, improving the effectiveness and efficiency of the state management of land, while increasing transparency in deciding land prices, increasing interconnectivity and modernizing public land services. However, nationwide land price data has not yet been formed, studied. Reserach projects of the Ministry of Natural Resources and Environment are still mainly focusing on solving land valuation problems and building a land database. In the world, the construction of an online land price information system has been implemented on the basis of WebGIS technology and achieved many good results. This article introduces the process and experimental results of building a land price database in Dong Cuong commune, Yen Lac district, Vinh Phuc province. Tools used in this study include ArcGIS Online, ArcGIS API, Microsoft SQL SERVER; Spatial land price data is built from cadastral spatial data after standardization according to Circular No. 05/2017/TT-BTNMT of the Ministry of Natural Resources and Environment. The experimental results of building a Land Information System identify 4 groups of users: Guests, Members, Data Management and System Administrator. The land price information system is designed in the form of a Web-app, installed on the website with the address: https://giadat.gis-humg.com.

The stochastic balance equation for the American option value function and its gradient

In the paper we consider the problem of valuation and hedging of American options written on dividend-paying assets whose price dynamics follow a multidimensional diffusion model. We derive a stochastic balance equation for the American option value function and its gradient. We prove that the latter pair is the unique solution of the stochastic balance equation as a result of the uniqueness in the related adapted future-supremum problem. The latter problem has an attractive interpretation: the given adapted stochastic process can be adjusted by a martingale in such a manner, that the observer will gain the perfect foresight of the resulting future-supremum process via the Snell envelope of the given stochastic process.

Use the DCF Model to Value the Company of NEXT

NEXT is a very common large clothing company in Britain, whose clothes are deeply in the hearts of contemporary young people. In the valuation of NEXT Company, the author found the formula of financial statements and selected a lot of useful data, and the DCF model was adopted. A variety of company data and many factors can affect the valuation results. So, many Excel sheets need to be created to summarize and calculate all this data. The final estimated market value is about 14.15 billion, while the actual market value is 8.66 billion. So, the results differ from NEXT's internal estimates, but the overall trend is similar. There are many reasons for this difference, involving some disadvantages of the DCF model and valuation problems. This paper enabled people to: have a certain understanding of the market development trend; learn a lot of valuation methods and become proficient in using them; more clearly understand the advantages and disadvantages of the DCF model; and have a more accurate understanding of the NEXT Company.

Modern problems of goodwill valuation in accounting and reporting and ways to solve them

Goodwill valuation issues are among the most problematic for modern accounting and reporting. This article identifies the most pressing problems in this area today and presents proposals for their solution. During the research, such methods as the method of analogies, logical approach, analysis and synthesis, comparison, grouping method, systematic approach were used. As a result of the research, proposals were made regarding the terminology used in the above area, as well as the author’s view on the rules for the initial and subsequent evaluation of goodwill, both acquired in a business combination and created within the organization. The results obtained in this article will be useful to a wide range of readers interested in modern problems of accounting and reporting, including the valuation of assets at their recognition and after their recognition in accounting. The results obtained in this work can also be applied in the educational process of higher educational institutions, in the practical work of accounting departments and in the development and improvement of relevant regulatory documents on accounting.

VALUATION OF INTANGIBLE ASSETS IN THE CONTEXT OF ECONOMIC INSTABILITY IN UKRAINE

The article is devoted to the issues of intangible assets valuation caused by globalization processes, deep digital transformation of economic relations, and, as a result, implementation of the results of innovation and intellectual activity in all spheres of economic activity. Ukraine's current realities include the development and use of innovative software in military operations (artificial intelligence, autonomous systems (unmanned aerial vehicles), software (automated battle management systems, situational awareness systems, digital maps, etc.), in the field of security and defence, ecology, healthcare and rehabilitation of the military and civilians, restoration of energy and transport infrastructure, etc. All of these processes are associated with the generation of intellectual products and intellectual property rights, which are intangible assets by their economic nature and cannot be commercialized without their valuation.The purpose of the article is to analyze the international experience and national practice of valuation of intangible assets and intellectual property rights in the process of their commercialization, as well as in the accounting and reporting system in the context of economic instability. The author highlights the problems of valuation and disclosure of intangible assets in financial statements, in particular, the need to test them for changes in potential usefulness, given the effects of the global COVID-19 pandemic and the russian military invasion of Ukraine, which have led to impairment of assets, increased risks and their impact on accounting estimates and disclosures.The main results of this research are the improvement of methodological approaches to the valuation and testing for changes in the potential usefulness of intangible assets, taking into account the risks associated with the consequences of the COVID-19 pandemic, russia's military aggression against Ukraine, and global economic uncertainty.

Obligation and Value in the Phenomenological Philosophy of Law (Edmund Husserl’s Works)

Basing upon the two fundamental works of Edmund Husserl (Logische Untersuchungen and Idee) the author presents Husserl’s concepts of obligation and value according to the phenomenological reduction and the theory of the constitution of objects. Within the context of reduction the conclusions are: as according to Husserl the substance of normative sentences in valuation, the problems of obligation may be reduced to problems of valuation. The sense (Sinn) proves to be fundamental, prior to the existence. If anything should come to being in the ontological meaning it must become a moment of intentional life of consciousness. That is why the object and value exist in the same way but are only different names of some units of sense. The difference becomes clearer on a ‘higher’ level when they are characterised as intentional objects and the intentional experience directed towards them. Contrary to objects we can be directed towards values in a perceptible way (erfassenseise). The experience of value is always a based act. These acts are analysed against the background of noesis and noema. On the stage of constitution of the world it appears however that the substance of morality may be cognised with a personalistic attitude.

Multinomial distribution as part of valuation of the number of failures

Abstract. Aim. The paper aims to examine the application of a multinomial distribution as part of valuation of the number of an object’s failures. It is assumed that the valuation is “based on past experience” (a statistical sample of the number of an object’s failures accumulated over several preceding evaluation periods).Methods. The paper uses methods of system analysis, probability theory and mathematical statistics. The author analyses the primary indicators used to define the applied dependability indicators. It is noted that the valuation of such indicators based on statistical data for complex systems appears to be promising. The problem of valuation of the number of failures using a statistical sample is examined. The primary disadvantages of the used approaches are identified that are associated with errors in defining the average values of series, variation coefficients and asymmetry. It is shown that it is possible to solve the problem using the well-known combinatorics problem “on balls and boxes”, which leads to the use of a multinomial distribution. The paper examined the definition of probabilities for compositions and partitions of the number n into m parts, as well as the probabilities of a given number of balls being in a box with their maximum number. The author also considered formulas and algorithms that allow reducing the number of calculations in case of machine computation of the probabilities of a multinomial distribution. The feasibility of approximating a discrete distribution function by the Gumbel distribution is estimated. The paper demonstrates the feasibility of valuating the number of failures for a “segment” corresponding to a part (fraction) of an object’s dimension considered on a certain part (fraction) of the time interval. It also examines examples of valuating the number of failures for an object as a whole over a 1-month evaluation interval and for ½ of an object over a 12-month evaluation interval, while the total interval for which the statistical sample is accumulated is 72 months. The paper sets forth limitations on the application of the presented method and notes some of its possible advantages. In particular, it is noted that the statistical sample is only one implementation of the multinomial distribution, so it can be said that when applying the proposed method, the results of valuation are no longer affected by the presence of unlikely combinations of series values in the statistical sample. It is also noted that when applying the proposed method of valuating the number of failures, the obtained acceptable value will never be less than or equal to the average value of the statistical sample.Results. Formulas have been obtained for calculating, based on partitions, of the discrete density number and the maximum distribution function of a multinomial distribution. The paper presents the results of algorithm analysis for machine computation. The results of applying some algorithms are presented. A formula is proposed for approximating the distribution function of the maximum of a multinomial distribution using the Gumbel distribution (for the largest values) using the method of moments. The author recommends a range of values of the estimated interval, in which the proposed method provides acceptable reliability of the results. The task of further research is defined.

Joint Costs: Evaluation Problems and Solutions

Joint production is a particular type of production process that has as its output a plurality of goods that cannot separate. The production of one good also implies the production of the other goods output from the process. The joint production type poses two major valuation problems: the determination of the cost of the products obtained from joint production and the valuation of the inventories of these goods. The difficulties arise primarily because it is impossible to objectively allocate the common costs of the production process to the various products obtained from joint production. It will address these issues by analysing the hypothesis of joint costs that may occur following a block sale of tangible fixed assets at a lump sum price. When this hypothesis occurs, the problem arises of identifying the value of the individual assets constituting the block of fixed assets sold. It will also address this issue in the following pages.

Methodology for the supplier selection and valuation problem by using a combined grouping and multi-criteria approach

Methodology for the supplier selection and valuation problem by using a combined grouping and multi-criteria approach

Study of the main directions of the cadastral valuation of non-agricultural land in Uzbekistan

The current land-use policy in Uzbekistan has not provided clear solutions for different land users related to the cadastral valuation of land resources. Despite several land reforms that have been implemented until now, still, numerous issues can be easily identified in this field. For these reasons, this paper investigates the problems of cadastral valuation of land resources, including non-agricultural land, which are the national wealth of the country. It outlines the goals and objectives and the methods and techniques used to address them. A number of natural, social, economic, environmental, and political factors affecting the consumption characteristics of non-agricultural land, including settlements, have been identified. Using analytical analysis, calculations, and monographic methods, to date, the methods and approaches to land valuation developed in the country as a result of research in this area have been analyzed. Their shortcomings have been identified. They identify a number of specific features that have been overlooked in today’s market economy. Specific scientific recommendations for determining the relative value of land plots based on the type and nature of real estate located in settlements are given. On this basis, the procedure for calculating the market value of land in residential areas is provided.