Equity value refers to the book balance of equity investment minus investment impairment reserve. The book balance of equity investment includes investment cost and equity investment difference.
Equity value, that is, the book value of long-term equity investment, refers to the balance of the book balance of equity investment MINUS the investment impairment reserve. The book balance of equity investment includes investment cost and equity investment difference.
The measurement of equity value is not only related to the interests of shareholders, but also affects the relevance of accounting information. Using different methods to measure shareholders' equity will inevitably lead to different results. It is particularly important to choose an appropriate method to measure the value of shareholders' equity according to the asset value attribute. Under the current fair value measurement model, due to the logical defects between the attribute of owner's equity and the measurement model, it is suggested to adopt a single current market value measurement model to reflect the exchange value of assets, liabilities and owner's equity, and objectively and accurately reflect the market value of owner's equity. For listed companies, the equity value should be determined by the stock exchange market, not by the accounting measurement results, while for non-listed companies, the equity value should be determined by the market method.
Trend prediction of equity value of fund companies
Today, the asset management industry is becoming more and more market-oriented. According to Bangbang analysis, the equity value of fund companies will at least show the following trends:
First of all, the equity value differentiation of fund companies will intensify. For fund companies with real brand influence, corporate profits will get better and better, because there is enough space in China's asset management market. On the contrary, those fund companies with poor performance returns and limited brand influence will have smaller and smaller equity value.
Second, fund companies with poor management ability are becoming less and less attractive. Most investors in the equity of fund companies are traditional industries. In the difficult transition period of transformation and upgrading, traditional enterprises are too busy to take care of themselves, and the fund companies they invest in are losing money, so the willingness to sell the equity of fund companies will be strengthened. Equity integration and mergers and acquisitions may occur between fund companies. If fund companies go public in the future, it is not excluded that some powerful fund companies will package the equity of small fund companies and go public as a whole.
Third, emerging industries will gradually grow up in the future, and equity investors of fund companies will become more and more diversified. Emerging companies may invest a lot in the equity of fund companies and transform fund companies with Internet thinking. For example, Internet giants will set foot in the fund industry more frequently, and the concept of Internet funds will become more prominent.
Fourth, in order to strengthen the management strength of fund companies, integrate resources among shareholders, or introduce new resources, fund companies will take the initiative to introduce powerful shareholders or foreign shareholders and optimize their governance institutions. In this context, the equity structure of fund companies will change, and the equity value depends largely on the resource integration ability of major shareholders and the management level of fund companies.