Authors: Athanasios Karampouzis, Dimitrios Ginoglou

Title: ACCOUNTING ADJUSTMENTS FOR APRAISING SMEs IN GREECE

Abstract

The present paper examines accounting issues that come up when evaluating a private firm under the Greek accounting standards. More specifically, we try to provide an accounting framework for appraisers who, when they try to retrieve intrinsic values of SMEs, make use of the Free Cash Flows to the Firm (FCFF) model. We focus on adjusting the firms’ statements’ items in order to produce a nominator that is consistent with the FCFF theory, taking in response- among others - the differences between IFRS (which are mainly used in several countries for business valuation) and the Greek General Chart of Accounts. Finally, we produce a rather normative formula, which can be positively used upon this very model (FCFF) in order to assess the value of a private firm in Greece.