Research On The Application Of EVA In Tobacco Commercial Enterprises

This article studied how to establish the accounting methods of EVA (Economic Value Added) in China tobacco commercial enterprises. EVA is the "real profits" compared with the accounting profit by considering the cost of capital. EVA evolved from the economic profit. Stern Stewart & Co. carried out commercial development for EVA. EVA has become global corporation governance and performance standards, and gradually widely used in the world.In our country, State-owned Assets Supervision and Administration Commission (SASAC) revised and issued the "Interim Measures for assessment of the operational performance of the person in charge of central enterprises" (hereinafter referred to as the "SASAC method"). EVA evaluation was implemented in central enterprises managed by SASAC. Accounting for 40% of the weight, EVA is an annual assessment indicator, replacing the rate of return on net assets. The implementations of EVA assessment have the effect of emphasizing the value of creation enterprise and improving shareholder returns and investment benefit.China National Tobacco Corp and its inferiors at all levels have not yet fully implemented EVA. The extensive style of growth is hard to be carried on. China tobacco assumed the task of state assets value as well as other central enterprises. EVA Which pays attention to value creation and the efficiency of capital advantages is the effective guarantee to healthy development of Chinese tobacco companies. The tobacco commercial enterprise, as part of Chinese tobacco industry, is monopolistic. And it is imperative to implement EVA in Chinese tobacco companies. In this paper, EVA accounting method is proposed for the Chinese tobacco commercial enterprises, by the analysis of the current the "SASAC method". EVA accounting method for Chinese tobacco commercial enterprises is verified by the actual data of TZ Tobacco Company.