The aims of BVA
- Allows evaluation of true return on investment by integrating operating profit with asset management
- Motivates managers to manage balance sheet and profits
- Drives continuous improvement at every level
- Reports value earned by a business after charged for assets used to earn those profits simplest form: Profit after Tax less Cost of Capital employed.
Integrated financial measurement for:
- Goal setting
- Business performance assessments
- Evaluating opportunities
- Determining bonuses
- Measure communication internally and externally
- Capital budgeting – replacing ROSI calculations