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Discount Rate—Explanation, Definition and Examples

Valutico

In this article, we’ll cover the basics of what a discount rate is and where it’s used. In this article, we cover the latter. To refine the selection of the discount rate, it’s important to draw on inputs from credible sources regarding economic, industry and company specific risk factors.

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How to Build a Dynamic Risk Assessment

Audit Board

This article originally appeared on EY Insights. Stay tuned for a second article deep dive into GE’s journey with a data-driven dynamic risk assessment. Learn more about Dynamic Risk Assessment solutions powered by AuditBoard and EY here. Do you know what must go right to achieve your organization’s strategic objectives?

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PARAMETERS UPDATE P5.5

Equidam

You can refer to the table at this link to see how they will change for your country specifically. Most of the parameters determining the discount rate have been updated to reflect the most recent market situation in terms of systemic and industry-specific risk. 2 | Discount rate components used in the two DCF methods.

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Bottoms-Up Audit Planning: Risk-Based Auditing From Planning to Scoping

Audit Board

As an alternative, a bottom-up approach starts with the risks and asks which entities are impacted by those risks, leading to a more accurate scoping for the audit plan. In traditional planning, the risk assessment is used to determine high-risk entities.

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Mythical Adverse Effect

Reynolds Holding

Against this inexorable trend, I argue in a forthcoming article that these endemic efforts to customize MAE definitions are in fact inefficient and counterproductive. This structure is intended to allocate to the seller only target-specific risks within the seller’s control, leaving the buyer to bear all other risks.

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Risk-Seeking Corporate Governance

Reynolds Holding

In a new article, we propose that VCs have taken on a new corporate governance role: to persuade risk-averse founders to pursue high-risk strategies. Founders may be reluctant to take on so much risk. In our model, VCs address the divergence in risk preference by striking an implicit bargain with founders.

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PARAMETERS UPDATE P5.8

Equidam

To help explain why, we have provided more detailed analysis in the article below. Discount rate components used in the two DCF methods Most of the parameters determining the discount rate have been updated to reflect the most recent market situation in terms of systemic and industry-specific risk. What’s changing: 1.

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