Strategic Business Modeling of Assets in EPS and TENT

29. August 2011. / Uncategorized

 

The presentation of methodology which will be used in the third evaluation of fixed assets of PE “Electric Power Industry of Serbia” was held at TPP “Nikola Tesla” A in Obrenovac.

Consulting team, composed of experts from “Enegroprojekt-Entel” and the Economic Institute in Belgrade, in front of more than a hundred participants, representatives of the thermal power, hydro power and coal sectors, presented a method for evaluation of assets of PE EPS, the organization and project management and time frame for its implementation. 

Evaluation of immovable assets, plants and equipment of PE EPS, will be made as of 1 January 2011, and should be completed by 15 December of the current year.

Both working and basic teams of all companies and PE EPS are involved into such a complex and thorough job which will be coordinated by a central team led by Boško Buha, manager of the department of energy generation.

The aim of evaluation is to correct all the mistakes made in previous evaluations and to reevaluate everything that was done in EPS additionally, thus coming up with the real value of EPS, Boško Buha said.

After application of international accounting standards in 2004, there was an obligation of each company to take care of reported value of its assets, or due to the changes on the market and the needs of harmonization of business books with the requirements of this standard to come to the most correct, that is, fair evaluation of the assets.

We all know that in the last ten years much was invested in investments funds, and as  a consequence of this, life time of some plants was extended for 15 even 20 years, for example unit A6 which only started this year after the second phase of rehabilitation.

On the other hand the generation of electric energy is increased by 3.2 billion kilowatt hours per year, which is 15% more than it used to be in 2003 and the estimated value is very low and in order to make proper and valid financial statements that show whether we are successful or not, besides energy generation and electricity price, one of the most important factors is the value of the assets we possess (building site, construction objects, equipment etc.), and with this evaluation we will come to the real value- explained Mr. Ðordi Biljanovski, Deputy Manager of TENT power plants,.

Source: TENT

 

 

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