This article investigates the relationship between a firm’s performance and Residual Value Models (RVM) which serve as decision making tools in corporate management. The main measures are the Economic Value Added (EVA®) and Cash Value Added (CVA®), with key components the Residual Income (RI), Free Cash Flow (FCF) and Weighted Average Cost of Capital (WACC). These measures have attracted considerable interest among scientists, practitioners and organizations in recent years. This work focuses on the relations, among Net Income (NI), Residual Income, Cash Flows from Operations activities (CFO), cost of equity capital and debt capital, we also discuss the usage of accounting data from accrual or cash flow basis, the economic adjustments on them, and the compatibility with IFRS4 rules or other countries’ GAAPs5. Generally, the decision making based on Value Based Management (VBM) key metrics shows inconsistencies and limitations in definitions and applications, but at the same time, it is a way for management to have influence on the company’s performance and total market value (TMV) which are strongly related to current and future VBM key metrics’ amounts. The contribution of this paper is that it surveys from a critical perspective, literature about Residual Value Models (RVM) and VBM metrics and proposes a new framework for managing the firm’s value and monitoring performance. f his legislature, which ends in 2010 (1). Polish Prime Minister Donald Tusk said during the Economic forum in Krynica that Poland would adopt euro in 2011 a year before the European football championship organized together by Poland and Ukraine. In November 2008 Polish Government accepted so called road map to introduce euro by 2012. Firstly, Polish zloty should join the ERM 2 system which was planned in the middle of 2009. Secondly, after accomplishment convergence criteria in 2011, Poland is going to fix the permanent exchange rate between polish zloty and euro. Thirdly, introduction of Euro and withdrawal of polish zloty is previewed on 1 January 2012. The prices on polish market are going to be presented in two currencies (polish zloty and Euro) during six month. However, before Poland will join the euro zone , the Polish Constitution has to be amended to give the European Central Bank the right to print and distribute euro as a national currency. In connection with the world financial crises and suddenly devaluation of polish zloty most economist agree that government plan of euro introduction in Poland is too rushed and not realistic and adhesion of zloty into ERM 2 system should be delaying.
