Denny Construction, Inc. v. City and County of Denver, Colorado, acting by and through its Board of Water Commissioners This article presents a case analysis wherein a general contractor sued for breach of contract and litigated the owner for breach of co bid due to its impaired bonding capacity, which resulted from defendant’s declaration of default and claim against the contractor’s performance bond. This latter act had a negative impact on the general contractor since the surety company reduced or eliminated the general contractor’s bonding capacity until the litigation was resolved. Therefore, the general contractor was unable to bid on…
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Technology Expectations This article discusses the importance of adopting the latest technology and software and how to minimize the value gap. Most accountants have struggled to keep up with this new wave of technology and a growing value gap is arising in firms of all sizes. This value gap represents all the lost opportunities by not having the right technology solutions in place. These lost opportunities include a loss of revenue, the inability to attract new clients, realization struggles, and difficulties in hiring and retaining staff. Has your firm utilized technology to its fullest capacity to provide the highest quality…
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While affordability remained a top hurdle for homebuyers in recent years, tales of accelerated home price appreciation wane. Property values are steadying and even declining in major cities, and the housing market heads for what is considered “normalcy” for the first time in two decades, according to Zillow. To read the full article in National Mortgage News, click: 12 Housing Markets where Home Buyers Get the Most Bang for their Buck.
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David was extremely gratified when he was named businessman of the year. He felt he deserved the recognition. Many articles had portrayed him as an entrepreneur who had reframed his industry, which gave him the courage to make his boldest move yet: taking over his largest competitor. Some analysts had said that he paid far too much for the company. Then bankers became nervous and soon reporters joined in. To read the full article in Insead Knowledge, click: The Icarus Syndrome: Execs Who Fly Too Close to the Sun.
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In the wake of various state deregulatory proposals that threaten to have an adverse effect on the CPA profession, the AICPA and the National Association of State Boards of Accountancy (NASBA) have helped found a new coalition of advanced professions focused on educating policymakers and the public about the importance of rigorous professional licensing standards. To read the full article in Journal of Accountancy, click: Coalition Launched to Protect Professional Licensing.
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It is all Based on Your Perspective In this article, the author presents three common ways that a single purchase price may be calculated and presented. With football season on the horizon, I cannot help but think about September 24, 2013—a night that many football fans will not soon forget. The Seattle Seahawks were playing the Green Bay Packers on Monday Night Football. The game was going down to the wire and Seattle trailing 12-7 with only a few seconds remaining. With time expiring, Seattle quarterback Russell Wilson heaved a 24-yard pass to receiver Golden Tate in the endzone. Green…
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Is it the Market or the Model? Petitioners in Delaware appraisal cases must necessarily argue that fair value exceeds the deal price. In contrast, financial economists tend to view prices from a well-functioning market as “true north” when valuing a stock. Valuation models—such as a discounted cash flow (DCF) model—+can be important tools but are known to be sensitive to their numerous inputs. When such a model results in a valuation that is at odds with market prices, it is imperative to understand the disconnect: Is it the market or the model that is wrong? In this Q&A, Analysis Group…
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With the effective date for the new IFRS lease accounting standard fast approaching, companies are wading through a number of challenging issues related to lease identification, data extraction, and software implementation. To read the full article in Financial Management, click: Lessons from Lease Accounting Implementation.
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In just over a decade, China has created the world’s largest high-speed rail network Now passenger use is expected to catch up due to rapid industrialization, wanderlust and rising incomes To read the full article in South China Morning Post, click: China’s High-Speed Rail Network has Been Low Speed in Adoption—But That’s Set to Change.
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A now record-setting run of U.S. economic growth enters its 121st month on Monday, sustained by a decade of low interest rates and massive Federal Reserve intervention that helped put 22 million people back to work. To read the full article in Reuters, click: As U.S. Expansion Notches Record, Recovery May Have Only Just Begun.
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The Excess Earnings Capitalization Rate This article presents a method for calculating the capitalization rate for excess earnings. The good news is that this capitalization rate can be calculated. The bad news is that with the calculated excess earnings capitalization rate, the excess earnings method gives the same value as the single period capitalization method under the Income Approach, i.e., the excess earnings method is not an independent valuation method. This article presents a method for calculating the capitalization rate for excess earnings. The good news is that this capitalization rate can be calculated. The bad news is that with…
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One Has Traction with Prospects, the Other Does Not Any product/service can almost always be viewed as either a vitamin or a painkiller. Which do you (or your firm) offer? Any product/service can almost always be viewed as either a vitamin or a painkiller. Which do you (or your firm) offer? BVFLS Services Can be Either Vitamins or Painkillers What’s the difference? Kind of obvious, but vitamins: Are condition-generic and can be found in every grocery or drug store.And so, they’re easy to come by. Don’t have universally recognized health benefits.And so, taking them may or may not make you…
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Construction companies are developing an AI system that predicts worksite injuries—an example of the growing use of workplace surveillance. To read the full article in MIT Technology Review, click: Artificial Intelligence Sees Construction Site Accidents Before They Happen.
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Recent performance has favored passive investing. But a look at the big picture shows how performance moves in cycles, and reveals why active may soon pull ahead. To read the full article in Hartford Funds, click: The Question is Active or Passive Investing. The Answer is Yes.
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Well over half say they would back Sen. Elizabeth Warren’s plan to tax those with more than $50 million in assets, a survey finds. To read the full article in CNBC, click: Millionaires Support Proposed Tax on Large Wealth: Tax Strategy Scan.
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Privately Held Promissory Notes How should a privately held promissory note be valued? In this article Bruce Johnson answers this question. Bruce notes that the key issues to consider when valuing a privately held promissory note are the interest rate, amortization term, collateral, payment history, covenants and marketability of the note being valued. Once this information is assessed, an appraiser can conclude whether the subject note’s interest rate is below or above the market rate for a comparable investment with the same level of risk. The author advocates the use of rates from Business Development Companies because they are more…
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an Effective Elevator Pitch Professionals in the accounting, valuation, and finance sectors frequently struggle with a deceptively simple task: describing in a few words what their firm does and how it stands apart from the competition. If you, the reader, have experienced this difficulty, you can make it easier on yourself by having a thoughtful and concise elevator pitch ready to deploy when the opportunity arises. The ideal elevator pitch explains in clear, straightforward language what your firm does and how it is positioned in the marketplace. In this article, I will share some proven tips on how to write…
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Strong management goes beyond ethical behavior, efficiency, and carrying out company strategy—even though each of those is important. Managers are a key reason that employees show up to work engaged or not. Managers can live their values, set clear expectations on schedules, engage in two-way communication, and more. To read the full article in Journal of Accountancy, click: Memo to Managers: Practice What You Preach.
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Firms are spending plenty on tech but are skimping when it comes to training their people to recognize an incoming attack. To read the full article in Financial Planning, click: The Cybersecurity Defense Advisors Forget.
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The world looked very different in 1943, when the psychologist Abraham Maslow’s “hierarchy of needs” model was first published. The world was just in the early stages of realizing the potential of computing power, which codebreakers would use to help bring an end to the world war. Fast forward to 2019, and we stand on the brink of another seismic shift: the Fourth Industrial Revolution. Amid a picture of further disruption and change, how can this model of human motivation help us understand the needs people have in today’s digital economy? To read the full article in World Economic Forum,…