Earnings evaluation Report

The first major attempt to evaluate the quality of business operating results was the Stern Stewart EVA computation, a proprietary complicated formula that can make up to 160 adjustments to reported earnings of public companies. A component of EVA is to determine a firm s net operating income after tax and while it may accomplish this objective, it has been criticized because it relies on data that, as stated earlier, can be managed (Brewer Chandra, 1999). It was more than a decade before Wall Street analysts accepted EVA, and today its use is widespread in the corporate world, but not as much as in the investment world. 

In August 2002, Merrill Lynch, the only Wall Street investment banking firm to enter the discussion, issued its Quality of Earnings Report, which used four financial discriminating screens created with Professor David Harkin of the Harvard Business School to evaluate the quality of earnings. 

Conducting regular periodic evaluation of actual work performed (earned units) and comparing them with the estimate and the contractors daily force reports the project team can keep close tabs on ... 

The average of earned score of students is calculated for the different evaluation parameters such as analyzing the problem, executing the activity, team work, and preparation of report. These activities are mapped on to following POs as in Table 1. 

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