• QuickRead Featured - QuickRead Top Story - Valuation/Appraisal

    A Crisis is Brewing

    November 2, 2016

    What NACVA is Doing to Protect Our Industry On August 4, 2016, the U.S. Treasury in lock-step with the Internal Revenue Service (IRS) published Proposed Treasury Regulation 163113-02 (hereafter, the “proposed regulations”) which intend to drastically alter the application of current Internal Revenue Code §2704, particularly as it applies to valuations of family owned businesses and family farms. The proposed Treasury regulations were long-expected and released nearly a year beyond when they were first intended to be released. However, along with the late release, the proposed regulations contain a very short fuse as they intend to put these new rules…

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    How to Add a New Specialty to Your Practice

    November 2, 2016

    By developing expertise in a new practice area, a CPA can increase income and become a more well-rounded professional.  Robert M. Caplan, CPA, shares his helpful insights on how to help you and your practice. To read the full article in The Tax Adviser, click: How to Add a New Specialty to Your Practice.

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    5 Scary Tax Characters to Watch Out For

    November 2, 2016

    Demons and witches are scary, but the Creatures from Schedule C and the Overstatement Ogre can be downright terrifying, especially if they generate a notice from the Internal Revenue Service.  Not sure who they are?  Ann Marie Maloney, communications manager for AICPA, says, read on, if you dare. To read the full article in AICPA Insights, click: 5 Scary Tax Characters to Watch Out For.

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    Ultimate Earnings Adjustments

    November 2, 2016

    Since the Federal Reserve issued guidance on leveraged lending limits, borrowers and lenders have been interested in the ratio of debt-to-EBITDA in proposed financing packages.  However, banks are supposed to steer clear of deals for which the ratio is 6.0x or greater.  Travis Harms, Mercer Capital’s Financial Reporting Valuation Group lead, explains the topic of earnings adjustments. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Ultimate Earnings Adjustments. This article is republished from Mercer Capital’s Financial Reporting Blog.  It is reprinted with permission.  To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.

  • QuickRead Featured - Valuation/Appraisal

    Exploring the Pluris® Restricted Stock Database and DLOM Calculator

    November 2, 2016

    A White Paper Detailing Use of the Pluris Database to Develop a DLOM (Part III of III) The Pluris DLOM methodology involves calculating two values: Restricted Stock Equivalent Discount (RSED) and Private Equity Discount Increment (PEDI). Does RSED represent an illiquid position that does not directly relate to the lack of marketability of a private held business? How reliable is the RSED DLOM? As for PEDI, how reliable is the methodology? In this article, Marc Vianello answers these questions and provides more insight on the methodology employed. Read Part I here. Read Part II here.

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    IRS Issues 2016–2017 Special Per-Diem Rates for Travel

    October 26, 2016

    The IRS issued its annual updates of per-diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home on or after Oct. 1, 2016.  Sally Schreiber, senior editor for JofA, explains. To read the full article in the Journal of Accountancy, click: IRS Issues 2016–2017 Special Per-Diem Rates for Travel.

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    Checklist for a Better Negotiation

    October 26, 2016

    Simple Changes to the Way You Approach a Negotiation Can Help You Cut Costs and Increase Profits Taking a fresh approach to negotiation can help you cut costs and increase profit for your organization.  Samantha White, senior editor for CGMA Magazine, explains that expert negotiators draw on a raft of skills, but thorough preparation, builds confidence and is the foundation of a successful negotiation. To read the full article in CGMA Magazine, click: Checklist for a Better Negotiation.

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    Purchase Price Allocations in the Lab Services Industry

    October 26, 2016

    Mergers and acquisition activity relays much information to the general public.  Following an M&A transaction, acquirer companies conduct purchase price allocations (PPAs) to measure the fair value of various tangible and intangible assets of the acquired business.  Karolina Calhoun, senior financial analyst with Mercer Capital, discusses that the Mercer Capital Lab Services Newsletter observes and analyzes M&A transactions in order to gain insight into the drivers and financial metrics behind the deal. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Purchase Price Allocations in the Lab Services Industry. This article is republished from Mercer Capital’s Financial…

  • QuickRead Featured - Valuation/Appraisal

    Exploring the Pluris® Restricted Stock Database and DLOM Calculator

    October 26, 2016

    A White Paper Detailing Use of the Pluris Database to Develop a DLOM (Part II of III) In this second part, of a three-part series, Marc Vianello examines whether discounts reported in PLURIS DLOM Database are consistent with past changes in SEC Rule 144 required holding periods; How the PLURIS Restricted Stock Discounts Correlate with other reported Metrics; How to use PLURIS Database for Benchmarking; and the two challenges practitioners attempting to benchmark will encounter using the PLURIS Database. Read Part I here.

  • QuickRead Featured - QuickRead Top Story - Valuation/Appraisal

    Analyzing Complex Appraisals for Business Professionals by Shannon P. Pratt and John Lifflander

    October 26, 2016

    Appraisals from Real Estate, Machinery and Equipment to Business Valuation: Book Review by Michael D. Pakter The purpose of this book review is to introduce the reader to Shannon P. Pratt’s newest book, co-authored with John Lifflander. For those improbable few business valuation professionals who do not know who Dr. Pratt is, he is the Chairman and CEO of Shannon Pratt Business Valuation, Inc. and Publisher Emeritus for Business Valuation Resources LLC.

  • QuickRead Featured - QuickRead Top Story - Valuation/Appraisal

    Inherited Property

    October 19, 2016

    The Tax Rules Were Never Friendlier, But Changes May be on the Way The biggest loophole in the tax code may soon be coming to an end—at least according to the messages sent by the Obama administration and its recent budget proposals. The American Taxpayer Relief Act of 2012 (ATRA) set a whole new tone for most estate plans when it took the dreaded estate tax off the table. However, it is no secret that the IRS has been making a concerted effort to recapture some of the revenues lost from property transfers by way of gift or upon death.…

  • QuickRead Featured - Valuation/Appraisal

    Exploring the Pluris® Restricted Stock Database and DLOM Calculator

    October 19, 2016

    A White Paper Detailing Use of the Pluris Database to Develop a DLOM (Part I of III) Business valuation practitioners continue to debate the merits of different databases to develop a discount for lack of marketability (DLOM).  In this first- of a three-part series, Marc Vianello discusses what the Pluris DLOM database is, explores how accurately Pluris transactions are reported, and discusses how the Pluris DLOM Database has been presented to the business valuation community.

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    Private Collection Agencies to Start Collecting Tax Debts in the Spring

    October 19, 2016

    Under legislation enacted last year, the IRS is required to use private debt collection agencies to collect outstanding inactive tax liabilities.  The IRS has awarded contracts to four companies to participate in the program in spring 2017.  Sally Schreiber, JofA senior editor, explains what this all means. To read the full article in the Journal of Accountancy, click: Private Collection Agencies to Start Collecting Tax Debts in the Spring.

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    5 Low- Or No-Cost Ways for CPAs To Help Slam the Door on Cybercriminals

    October 19, 2016

    With the news media announcing hacks, breaches, or phishing scams virtually every week, cybersecurity has become a major concern for businesses of all sizes.  To recognize National Cybersecurity Month, the AICPA is publishing a series of blog posts on the issue.  In this first post, Susan Pierce has some tips to help CPAs understand five low- or no-cost ways to defend against cybercrime. To read the full article in AICPA Insights, click: 5 Low- Or No-Cost Ways for CPAs To Help Slam the Door on Cybercriminals.

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    FASB Muses on Goodwill Impairments

    October 19, 2016

    Goodwill—should it be amortized or not?  That is one of the questions the FASB has wrestled with over the last few years.  Lucas Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, takes us through the changes to this system that are in the works, as the FASB Board made a few tentative decisions regarding the accounting for goodwill impairment for public and private entities. To read the full article in Mercer Capital’s Financial Reporting Blog, click: FASB Muses on Goodwill Impairments. This article is republished from Mercer Capital’s Financial Reporting Blog.  It is reprinted with permission.  To subscribe…

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    Disguised-Sale and Partnership Liability Allocation Rules Issued

    October 12, 2016

    The Internal Revenue Service issued three sets of regulations last week that address issues of disguised sales of property by or to a partnership and allocations of excess nonrecourse liabilities to partners.  Alistair Nevius, The Tax Adviser’s editor-in-chief, explains these regulations. To read the full article in The Tax Adviser, click: Disguised-Sale and Partnership Liability Allocation Rules Issued.

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    Top Considerations for 2016 Audit Cycle

    October 12, 2016

    Areas of high attention for auditors during the 2016 audit cycle will include a new standard on naming the engagement partner as well as internal control over financial reporting.  Ken Tysiac, JofA editorial director, reports that key considerations for auditors in general and auditors of brokers and dealers are discussed in two new publications by the Center for Audit Quality. To read the full article in the Journal of Accountancy, click: Top Considerations for 2016 Audit Cycle.

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    Noncompete Agreements for Section 280G Compliance

    October 12, 2016

    Golden parachute payments can lead to significant tax consequences for both the company and the individual.  Lucas Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, discusses strategies to mitigate these tax risks to reduce the likelihood of additional excise taxes. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Noncompete Agreements for Section 280G Compliance. This article is republished from Mercer Capital’s Financial Reporting Blog.  It is reprinted with permission.  To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.

  • Litigation Consulting - QuickRead Featured

    How Much Information Do You Share With Your Spouse?

    October 12, 2016

    In re Marriage of Schneeweis, 2016 IL. App. 2d No. 140147 Marital law varies from jurisdiction to jurisdiction. In this article, Daniel R. Stefani discusses a recent Illinois Appellate Court case where the issue before the court was whether husband dissipated assets. The term dissipation is defined and the question raised is how much information do you share with your spouse and how that can impact an equitable division of marital property.