Unsecured Creditors: Risk and Cramdown Rates (Part II of II) This is the second of a two-part article, read Part I here. In October 2017, the Second Circuit Court of Appeals handed down its decision on cramdown interest rates in the matter In re: MPM Silicones, LLC. This decision has already stirred a great deal of discussion regarding cramdown interest rates to be paid secured creditors in Chapter 11 bankruptcy matters. Numerous articles have appeared on-line discussing the impact of this decision. These articles follow in a long line of literature on cramdown hearings and secured creditors. Conversely, little has…
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What’s Yours? Valuation professionals are a conservative lot that resist change. The author of this article embarked in a change that has transformed him and his practice. Upon reflection, he shares the lesson he learned is that “feeling afraid is my next level of growth coming to get me”. In this article, he encourages readers to take a chance, change, and take control of their lives since life is too short.
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For public companies, it is increasingly necessary to disclose a preliminary allocation of purchase price in the 10-Q or 10-K immediately following the closing date. Although M&A activity slowed in the first nine months of 2017 compared to 2016, valuation multiples have continued to rise and major stock market indices marched steadily higher. Lucas Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, explains. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Early Purchase Price Allocation Estimates Help Avoid EPS Surprises. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with…
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A taxpayer cannot blame tax preparation software for inaccuracies that lead to penalties. A recent Tax Court case provides a cautionary tale for taxpayers who rely on do-it-yourself tax preparation software to prepare their tax returns. Craig Smalley provides some insight into this. To read the full article in The Tax Adviser, click: Reliance on Tax Software Does Not Let Taxpayer Off the Hook.
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Republican lawmakers released a framework for tax reform, announcing that their goals are to cut tax rates, simplify the Internal Revenue Code, and provide a more competitive environment for business. The framework generally reiterates proposals made in April. Alistair Nevius, JofA’s editor in chief, explains. To read the full article in the Journal of Accountancy, click: Republicans Unveil Tax Reform Framework.
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Five Measures Leadership Should Consider to Address Vilification Is there room to negotiate with workplace dictators? In this article, the author discusses how to approach seemingly impossible workplace conflicts. The aim of every organization should be to provide a workplace where respect enables staff and key employees to serve customers, and the mission and vision are realized.
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Unsecured Creditors: Risk and Cramdown Rates (Part I of II) This is the first of a two-part article. In October 2017, the Second Circuit Court of Appeals handed down its decision on cramdown interest rates in the matter In re: MPM Silicones, LLC. This decision has already stirred a great deal of discussion regarding cramdown interest rates to be paid secured creditors in Chapter 11 bankruptcy matters. Numerous articles have appeared on-line discussing the impact of this decision. These articles follow in a long line of literature on cramdown hearings and secured creditors. Conversely, little has been written about impaired…
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What Tax Reform Could Mean for Annuities Republican lawmakers have said a tax overhaul framework would retain incentives meant to encourage retirement security, but uncertainty remains about the direction that reform will take. This article summarizes several ways changes in federal tax laws could affect annuities, charitable giving, and other aspects of retirement planning. To read the full article in ThinkAdvisor, click: Seven Ways the New Tax Fight Could Hit Annuities.
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Creativity is a very 21st century virtue. Relying on your skills as a technician does not seem like a very good idea in the nascent age of AI, regardless of your field. But being able to generate innovative and imaginative ideas can mark you out as a star, a shining goose laying golden eggs. To read the full article in Management Today, click: Four Ways to Generate Ideas Fast.
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Preparing for Clients’ Cognitive Decline Older clients may experience cognitive decline and memory problems that can lead to loneliness and other negative emotions. Understanding the ways in which clients’ cognition may change—and helping them plan for intellectually stimulating activities—can lead to better outcomes in retirement. To read the full article in the Financial Advisor, click: This is Your Brain on Retirement.
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Quantifying the Risk Adjustment Depending on the valuation assignment facts and circumstances, the valuation analyst (analyst) may encounter a unique valuation problem: a problem that is well outside the ordinary scope of typical valuation issues. Unique problems provide the analyst an opportunity to develop thought leadership solutions in a manner that (1) provides value to the client and (2) assists the reader of the valuation report. These thought leadership solutions (1) can provide context to the identified problems and (2) can help to measure the effect of the problem on the subject investment interest.
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Time to Check-in and Frankly Address those Emotional Issues Seller’s remorse is real and not being emotionally prepared to transition the business is as dangerous as the value and financial matters. The emotional component of the sale/transition is worth considerably more than the money you will receive for the business. In this article, Edwin Mysogland shares the importance of addressing the emotional issues that arise when small business owners transition out of the business.
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On June 1, 2017 the Public Company Accounting Oversight Board (PCAOB) adopted a new auditing standard to provide additional information to investors. The new standard received approval from the Securities and Exchange Commission on October 23, 2017. In this post, Rohan Bose, financial analyst with Mercer Capital, summarizes several of the major changes coming to audit reports in the near future. To read the full article in Mercer Capital’s Financial Reporting Blog, click: SEC Approves New PCAOB Audit Standards. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit:…
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Is your firm inadvertently pushing its best staff out the door? Mark Koziel, CPA, CGMA, explains the four most common mistakes to avoid to retain talent and to best use employees’ skills. To read the full article in AICPA Insights, click: Four Great Ways to Lose Talent.
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Accountants and business experts agree—if you want to create a stronger team, make a more substantial contribution to your company, and expand your sphere of influence, then you need to think outside the silo. Eddie Huffman describes how CPAs need to focus more on connecting with and influencing their management peers, not just the people above and below them. To read the full article in the Journal of Accountancy, click: Seven Tips for Managing Sideways.
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Challenging and Defending Compensation and Use of the Independent Investor Test C corporations and S corporations should pay shareholder/executive compensation based on the fair market value of the executive services rendered—or risk being audited and possibly penalized by the Internal Revenue Service. Forensic analysts can help companies determine reasonable shareholder/executive compensation using free or fee-based compensation data, with consideration of statutory authority and judicial precedent. This discussion (1) summarizes the federal income tax statutes and judicial precedents related to shareholder/executive compensation, (2) provides a list of frequently relied upon executive compensation data sources, and (3) reviews important issues presented in…
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Medical Director Compensation This article is the fourth in a series involving current healthcare management issues. An in-depth article on this issue was published in The Value Examiner’s September/October 2017 issue. In that issue, the authors discuss issues setting forth medical director services and establishing defensible compensation arrangements.
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We have all had those cringe-worthy moments on videoconference calls when a colleague or customer forgets that we can see and hear everything they are doing. It is hard to be our best selves all the time on screen, especially with videoconferences becoming more common as remote work arrangements and widespread teams become increasingly common. Lori Sexton, CPA, CGMA, provides you with four considerations for proper etiquette during a video or any other type of conference call. To read the full article in CGMA Magazine, click: Four Etiquette Tips for Videoconference Calls.
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What is the purpose of audit planning if the audit may not ultimately follow the carefully thought out plan? As may be inferred from Dwight D. Eisenhower’s words—”Plans are worthless, but planning is everything”—the value of audit planning is not derived solely from the resulting audit plan. Daniel Gartland, risk control consultant at CNA, describes the importance of detailed planning. To read the full article in the Journal of Accountancy, click: The Importance of Audit Planning.
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Accountants should focus on providing niche areas of service such as business valuation and retirement planning and move away from tasks including bookkeeping and financial reporting because automation and technological advances will take over much of their work. Dominic Diongson, deputy editor for AccountingWEB, explains. To read the full article in AccountingWEB, click: CPAs Should Shift to Niche Services as Automation Takes Over.