Based On Economic Value Added Evaluation Of The State-owned Asset Management Company About Budget Management Research

Comprehensive budget management have been started to use since the last century in the United States.As an important management method for enterprises,it becomes the enterprise internal standard operating procedures and the basic management method with continuous development by various industries widely or deeply practices.The budget management system is initially established under the active exploration of Chinese enterprises,which has certain promotion effect on the development of the integration about finance and production,budget management guide operating,and lead the enterprise to digital and delicacy management.But with the development of budget management in China,The china enterprise had lots of misunderstand and lack the effective and incentive system in practice,It does not focus on the strategic plan,does not contact the business implementation plan,the budget operation are ambiguous,the budget implementation supervision is weak,the budget system is broad,the budget assessment lacks effective reward and punishment mechanism,comprehensive budget work is difficult to play its role under this environment.In the internal management of state-owned enterprises,performance appraisal is an effective tool of management.November 2003,the SASAC issued a "central business executives operating performance assessment Interim Measures." But the economic value added(EVA)joined into the assessment methods from the beginning of 2010,and it became the important symbol to promote the performance appraisal methods to achieve the transformation and development in recent years.Since the State-owned Assets Supervision and Administration Commission(SASAC)to implement EVA performance-oriented from the central state-owned enterprises,all state-owned company business management philosophy has undergone a major change.From the beginning of the interests of the gradual trend towards the direction of value-oriented.Subsequently,the state-owned enterprises not only concern the income indicators and profit indicators,no longer only focus on large-scale in the production and operation,but began to pay more attention to the balance sheet,especially the cost of capital control.Therefore,it can affect the business decision making by transform profit enterprise to value enterprise.Under the implementation of the new assessment model,in order to promote the EVA assessment objectives to be effectively implemented,a large number of the state-owned enterprises tend to put the EVA goal into the budget management.The original budget management model must face the transformation and development to meet the SASAC assessment requirements.If the comprehensive budget and EVA performance assessment combine,it will promote the overall development of budget management,and gradually improve the budget supervision and management mechanism,make standard calculation process to implement,associate the production,the operation and performance appraisal,and then effectively enhance the value of enterprises.This article taking an state-owned asset management enterprises as an example,based on EVA and comprehensive budget management research,pointed out that EVA-oriented comprehensive budget management system is beneficial to do business decision,optimize the allocation of resources and effectively control the cost of principal-agent.Budget management will be gradually improved and promote the true value of state-owned assets by EVA concept.