Research On A Power Supply Company's Comprehensive Budget Management Based On EVA

Along with the rapidly changing economic society and increasingly intense market competition,more and more enterprises begin to explore scientific management methods.Since 1980 s,as economic development occupies an increasingly important position in enterprise management,comprehensive budget management is successively divided into several modes,including beyond budget,activity-based budget,strategic budget and etc.Since the birth of the concept of economic value added(EVA)in 1982,it is adopted by Coca Cola,American Express and other companies.It is also had been popularize as atool of performance evaluation.Many enterprise managers hold the opinion that EVA index can reflect the ability of value creation of enterprises more clearly and accurately.Nowadays,the economic environment calls for higher requirement for enterprises' managers.In recent years,State-owned Assets Supervision and Administration Commission(SASAC)ask organizations to improve the ratio of EVA in assessment of state-owned business.The electric power industry,especially the development of the power supply enterprises,facesgreat challenges.All of these factors showed that the way of budget in power supply enterprises should keep pace with to the current situation.The A power supply company is a typical small and medium-sized power enterprises.In the context of the generation side,the power supply side competition and coal linkage,the bidding,enterprises should make a adjustment to achieve the goal of their budget management.The paper firstly makes a summary of comprehensive budget,relevant theories about EVA and literature at home and abroad;introduces the research achievements by previous scholars in these two fields;illustrates the concept and content of comprehensive budget,as well as the basic conceptand accounting adjustment of EVA;based on these,conducts mechanism analysis of the management of comprehensive budget by EVA.Except of the oretical analysis,this paper makes a case analysis combining with the actual condition of A power supply company.In this part,the paper first introduces the condition of A company and describes its management condition of budget one by one.Starting with current budget organizational system,budget system and procedure,budget making content and evaluation system,based on the analysis of the current situation of budget management in A company,this paper points out there are some problems in budget objective,implementation and assessment,including the lack of guidance and awareness of capital cost in content of budget objective,hysteresis quality in implementation and the limited attention on EVA index in assessment of comprehensive budget.Aimed at the existing problems of A company,EVA is introduced into comprehensive budget management.On the foundation of current comprehensive budget management,this paper constructs a comprehensive budget management system based on EVA,providing suggestions and supporting measures for budget management of A company and offering reference to the development of budget management in state-owned enterprises.