| In west countries, the emergency and development of asset appraisal attributes to the need to keep market run efficiently. But in China it is opposite for that it is the "artificial industry" created by the government to prevent the nation-owned asset from being eroded in the time of economic institution change. Though it is not a long time since the beginning of asset appraisal in China, we have directly not only learned the latest research outcome from developed countries in asset appraisal theory and the construction of the index system, but also combined it with the conditions of our country. This makes no difference between our country and abroad in theory level but there leaves a long way to go in the use of appraisal approach, especially in income approach. Income approach popular in developed countries meets an obstacle which constricts the use of it by the regulation "notice on strengthening the disclosure of financial information of the listed corporations" issued by China Security Regulation Committee.There are so many reasons for this embarrassment of income approach in China such as the institution and professional ethics which play a key role. But what is more important, as my opinion, is to choose the economic parameter at random while using the income approach due to the bad quality of the appraisers in the whole. So here I want to make a discussion on how to determine the economic parameters technically in income approach based on the economic environment in China.The discussion mainly consists of four parts:Firstly we will make a review on the theory of the income approach accompanying the business appraisal. We mainly talk about something remaining undone in the development of the theory and make a browse of the use of income approach in business appraisal in China. |
