The Application Of EVA Financial Model In Hai Yang Nuclear Power Project

The first part introduces the research background and significance.The second part introduces the meaning of economic value added (EVA). In 2010, the SASAC promoted EVA (Economic Value Added economic value added) as performance evaluation system, and guide enterprises from scale oriented development gradually to the value creation - oriented development mode transformation. As the enterprise value measure, EVA is better than the traditional accounting index in maximizing shareholder value.The ultimate goal of EVA value management practice is to establish the framework can make the all levels of management in company share the same management at concept, management method, management, and management decision, through with the goal of maximization of shareholder value is accomplished. Business management based on the value management takes value growth as grounded and for the purpose of a comprehensive management.After that, this paper introduces the EVA value management idea. This system should be established in any business decisions that are based on EVA as the core of the decision-making mechanism, including budget system, planning system, assessment system, and investment system and so on.The third part is the key part of the paper, which introduces the application of EVA financial model in nuclear power project. In practice, financial model is the core of EVA value management tools, and is characterized by the integration of factors and the logical system full of the analysis logic system, a manifestation of systemic, quantitative and scientific, which can be applied in financial analysis, value management, budget management as tools.The introduction of EVA financial model structure is achieved by "logic + factor". Financial model contains the relationship between business, investment, or investment variable based on the accounting standards. By changing the input variables, this prediction model can provide useful information for decision-making, which turns different assumptions to reality in the future. By time it is divided into driving factors based on historical data and forecast of the business year in the future. The implementation of dynamic management keeps up with changes in financial model time and structure.Decomposition of driving factors contributes to the logic model between all elements which divided into financial indicators and indicators of production and operation.With the SASAC EVA model as the framework, and based on three statements such as the income statement, balance sheet and cash flow statement, the financial model of the nuclear power project is well constructed. Using the EVA model data, he EVA model of the firm value is finished .Then take the EVA financial model calculation and analysis of specific application as examples.Finally this paper introduced the EVA financial model limitations as well as the application prospect of EVA financial model in nuclear power enterprise.