Economic Value Adding

Economic Value Adding (EVA) became a powerful tool to manage wealth perception. but it is only used in the process of personal wealth creation and ignores the impact that personal wealth creation activities are having on society as a whole.

TVM Value Accountancy uses a similar accounting methodology to EVA but including all the impacts that economic activities of all sorts are having on the society.

Economic Value Adding is used in the standard GAAP accounting world to optimize stockholder value. Impact on society is not taken into consideration.

Economic Value Adding in the TVM Value Accountancy framework is concerned with the impact on society and answers the question whether or not economic activities are contributing to the quality of life of the community at large.