The Importance of Establishing Financial Valuation of Fixed Assets in Public Companies whose Founders Are Local Self-Government Units in the Republic of Serbia

Milan Radović; Jelena  Vitormir; Slobodan Popović; Aleksandar Stojanović

doi:10.5755/j01.ee.34.3.29288

Authors

Milan Radović University of East Sarajevo, Bosnia and Herzegovina
Jelena Vitormir University of Megatrend in Belgrade, Republic of Serbia
Slobodan Popović Economic Academy, Republic of Serbia
Aleksandar Stojanović University of East Sarajevo, Bosnia and Herzegovina

DOI:

https://doi.org/10.5755/j01.ee.34.3.29288

Keywords:

Financial valuation, Fixed assets, Public companies

Abstract

Valuing company's fixed assets is one of the important tasks that top management needs to do in order to be able to make valid management decisions. This paper used data obtained from a representative survey of 170 public companies whose founders are local self-government units, which is about 25% of such companies in the Republic of Serbia. Unlike the other studies, the authors analyzed fixed assets of a company before and after valuation of total fixed assets. Internal audits’ recommendations and top management’s assessments regarding the valuation of total fixed assets of a company were the reason why this valuation was done. It was concluded that there is a high correlation (p = .00) between the obtained total assessment given by internal auditors and top management regarding the valuation of fixed assets before and after the valuation of total fixed assets of the company.

Author Biographies

Milan Radović, University of East Sarajevo, Bosnia and Herzegovina

Milan Radović, PhD, is an Assistant Professor at the University of East Sarajevo (Bosnia and Herzegovina), Department of Management, Department of Financial Management. He has won numerous awards for the best manager in banking (2009-2016). In addition, he won the award for the best manager of “Republika Srpska” (2010-2011), as well as for the best banker in the region (2015-2016), as well as the prestigious Businessman of the Year award given by “Nazvisne Novine” in 2016. He has published more than 35 scientific papers in the field of business management.

Jelena Vitormir, University of Megatrend in Belgrade, Republic of Serbia

Jelena Vitomir, PhD, is an Assistant Professor at the University of Megatrend in Belgrade (Republic of Serbia), Department of Management, Department of Financial Management. He is the author of numerous papers (more than 40) in the field of company management, especially in the field of management and management improvement through the use of valid decisions of top management. In addition, he is the author of several notable works on the management of public companies whose founders are local self-government units in the Republic of Serbia.

Slobodan Popović, Economic Academy, Republic of Serbia

Slobodan Popović (correspondent author), PhD, is an Associate Professor at the Economic Academy (Republic of Serbia), Faculty of Economics and Engineering Management, Department of Finance, Auditing and Accounting. He acquired the title of internal auditor of the public sector in the Republic of Serbia. He is the author of numerous scientific papers in the field of finance, accounting, auditing and applied agriculture. He has published more than 200 scientific papers.

Aleksandar Stojanović, University of East Sarajevo, Bosnia and Herzegovina

Aleksandar Stojanović, Dr., is a Professor at the Pale Faculty of Economics, University of East Sarajevo, elected as a lecturer in the narrower scientific field: Fiscal Economics, and worked in the following positions: assistant, senior assistant, assistant professor, associate professor, and is also a member of scientific and professional organizations or associations. Lecturer at continuing education seminars for managers, accountants and auditors. Member of the Council and then the Senate of the University of East Sarajevo in the period 2013-2016. year. Senior expert for public finance reform, Delegation of the EU Commission. Published more than 60 works.