Heightened IRS Scrutiny A look into recent Tax Court cases brings to light several issues that are on the IRS’ “radar screen.” Past QuickRead articles have highlighted some of the cases, including Section 2036, or “bad facts” cases. Another hot-button issue for the IRS is the proper treatment of conservation easement charitable contributions. Since 2010, courts have published at least 60 opinions addressing ...

NACVA’s Silver Anniversary Conference NACVA and the CTI’s 2016 Annual Consultants’ Conference held this past June in San Diego, CA was a spectacular assembly of presenters, attendees, exhibitors, candidates, and staff. This one pulled out all the stops, featuring prestigious keynote speakers, engaging training sessions, an assortment of networking opportunities, and many more events to enjoy. It proved to b ...

What You Say and How You Say it Matters (Part VI of VII) Anticipate that opposing counsel will challenge some aspect of the report and suggest flaws notwithstanding the hard work. How you present yourself and testify is of utmost importance. In this article, the author shares her views on how to prepare and address the criticism that will be leveled at you and your report. ...

Why Valuation isn’t the Only Thing that Matters During an Exit A big mistake that some startup businesses make is doing whatever it takes to maximize their valuation when they exit, writes Michael Morgan, CFO of Tegile Systems.  A single-minded focus on valuation can backfire if the market enters a downturn, he writes. To read the full article in CFO, click: Avoid These Mistakes When Planning an Exit. ...

Wall Street Starts Responding to Robo-Adviser Challenge Big U.S. banks have taken their time figuring out how to deal with robo-advisers, but they're starting to respond.  Some Wall Street banks are rolling out online advisory services, while others are acquiring them or augmenting existing internet platforms.  Jon Marino, Wall Street reporter, explains. To read the full article in CNBC, click: Big Banks ar ...

What is the difference between a company’s total capital value and enterprise value?  The difference between these two concepts is the treatment of cash.  In the following post, Z. Christopher Mercer, founder and CEO of Mercer Capital, examines the effect of cash on the relative valuation multiples of three public companies. To read the full article in Mercer Capital's Financial Reporting Blog, click: Marke ...

Drop the Excuses and Start Networking You're never too busy to build trust with your colleagues or meet new contacts, writes Peter Economy.  You'll miss out on opportunities if you avoid networking events because you think you're too busy or unlikely to meet anyone important. To read the full article in Inc., click: 10 Networking Mistakes That Get in the Way of Your Success. ...

How Some States Treat Net Operating Losses in Reorganizations A number of states still require corporations undergoing a merger or reorganization to meet a continuity-of-business-enterprise test before they can carry over net operating losses, a rule that hasn't been in effect federally since the 1954 Internal Revenue Code was enacted.  Ann Holley and Caralee Hall explain. To read the full article in The Ta ...

Jeff K. Davis, managing director of Mercer Capital’s Financial Institutions Group, attended Creditflux’s private credit conference in New York a couple of days before the Brexit vote.  He explains that there was not much concern mentioned among mostly U.S. credit investors about it as a market or economic catalyst; nor was there much concern expressed about an aging credit cycle. To read the full article in ...

Complying with Rule 26 of the Federal Rule of Civil Procedure (Part V of VII) What does Rule 26 of the Rules of Federal Civil Procedure provide? Using FRCP 26 as a basis for what is needed in federal court and possibly state court, the author discusses what is required from experts in their report. ...

Consideration for Closely Held Securities—DLOM Theoretical Models (Part II of II) This article summarizes the factors (and the empirical evidence) that the analyst may consider in the measurement of a discount for lack of marketability (DLOM) valuation adjustment associated with non-controlling securities of a closely held company. This security-level DLOM is different from the entity-level DLOM that is app ...

Hidden Headaches of Jointly Owned Annuities Annuities are considered wonderful vehicles for savers, no more so than for married couples.  The opportunity to obtain tax-deferred growth in a non-qualified deferred annuity is a key feature, particularly for individuals in high tax brackets who have already maxed out other available tax shelters.  However, annuities present a significant complication.  Michael ...

Brexit Market Losses Reached a Record $2T Global markets lost more than $2 trillion in paper wealth following news that the UK had voted to leave the EU.  That made the largest single-day drop in history, surpassing a $1.9 trillion sell-off during the financial crisis in September 2008.  Edward Krudy describes what happened. To read the full article in Reuters, click: Post-Brexit Global Equity Loss of Over ...

Guidelines Released for Employee Wellness Programs The Equal Employment Opportunity Commission has released guidelines for structuring employee wellness programs that adhere to health privacy regulations and anti-discrimination rules.  Employers should notify workers about how their health data will be used and encrypt sensitive information to ensure confidentiality.  Bertha Coombs, CNBC reporter, also sugg ...

Will Your Methodology be up to Snuff? Beyond Frye and Daubert (Part IV of VII) The methodology employed by the expert is a critical factor determining the admissibility of the testimony. Frye, Daubert, and Kumho provide guidance regarding the admissibility of the testimony. In this article, the author discusses these and recent cases, including: Manpower, Inc. v. Insurance Company of the State of Pennsylvan ...

Consideration for Closely Held Securities, Part I of II Valuation analysts may be asked to value closely held company securities for various reasons. These reasons include transaction pricing, financial accounting, taxation planning and compliance, and litigation (related to both breach of contract and tort claims). Depending on: 1) the business valuation approaches and methods applied; and 2) the benchmark ...

One Way to Address Succession Issues With leaders from the baby-boom generation retiring, the CPA profession is looking for new leaders to step forward.  This has increased the urgency around retaining and developing women in leadership positions in the profession.  Ken Tysiac, JofA editorial director, reports. To read the full article in the Journal of Accountancy, click: Succession Issues Likely to Fuel U ...

Three Pointers for Choosing a Company Retirement Plan Simple IRAs and 401(k)s are typically the best retirement-plan options for companies with more than 10 or 15 employees.  Kathy Kristoff, finance writer, explores what to consider when setting up such plans, including the safe-harbor provision and the discrimination tests that apply to 401(k) plans. To read the full article in Inc., click: Pick the Right ...

Accounting-Related Class-Action Suits Rose In 2015 The number of securities class-action lawsuits related to accounting rose to a four-year high last year, with 71 actions filed, according to a study from Cornerstone Research.  The total value of settlements in these cases also rose significantly, surpassing $2.6 billion.  Michael Greene explains that these cases often involve allegations of internal-contro ...

The Appraisal Practice Board of the Appraisal Foundation released The Valuation of Customer-Related Assets.  As Karolina Calhoun, senior financial analyst with Mercer Capital, explains, the non-authoritative best practices guidance elaborates on valuation approaches and methodologies that can be used to measure fair value of customer-related intangible assets. To read the full article in Mercer Capital's Fi ...