After the COVID-19 Pandemic The COVID-19 pandemic put a strain on the U.S. and global economies as well as individual lives throughout the world. As much as most people would like to put 2020 behind us, experts will have to continue to review financial returns from 2020 in the historical data for businesses claiming to have been injured by wrongful acts in 2021 and the future. As much as an expert would like to disregard the 2020 results, questions need to be asked as to how the injured business’ market and customers were affected by the pandemic and what level…
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Implementing the Practicability Exception under ASC 2016-01 An adverse economic consequence of COVID-19 that has made headlines is the significant impairment charges business entities have taken related to their non-financial assets, such as intangible assets and goodwill. Less notable has been the pandemic’s similar effect on an entity’s financial assets, including equity securities without readily determinable fair values. Fair value for these types of equity investments is measured in accordance with FASB Accounting Standards Update (ASU) 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which is codified within ASC 321, Investments in…
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Then and Now The Americans with Disabilities Act (ADA) became law in 1990. It is a civil rights law that prohibits discrimination against individuals in areas of public life, including jobs, transportation, schools, and most private and public places open to the public. The ADA has been amended over the years and this article provides an overview of the ADA, the proof that must be met to bring an action, and how it continues to evolve. Background The Americans with Disability Act (ADA) turned 30 last year. In July 1990, President George H.W. Bush signed the historic civil rights legislation.…
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Related to Property Contaminated by COVID-19? Insurance policies for business interruption generally require the interruption of business operations to be the result of a “direct physical loss of or direct physical damage to property.” The crucial issue that business owners will face when making a claim for the losses that they will undoubtedly incur will be whether COVID-19 can constitute a “direct physical loss” or “direct physical damage” to property. This article discusses the different theories plaintiffs can advance to make their claims. Not only has the COVID-19 pandemic impacted the health of hundreds of thousands of people globally, but…
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No Tulip Bulbs Here! What is a non-fungible token (NFT)? How are NFTs valued? This article discusses NFTs and the valuation challenges these present. What is a non-fungible token (NFT)? Recently, the media has seemed to catch on to the new(ish) invention—NFTs. Even the recent episode of Saturday Night Live (SNL) has featured an entertaining segment explaining the nature of NFTs to the rhythmic beat of an Eminem song. NFT is a unique, non-interchangeable digital asset backed by blockchain ledger technology. Non-fungible characteristic of these tokens or assets refers to the unique or scarce and non-replicable nature of this digital-crypto…
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Benefit Valuation Adjustment The so-called tax amortization benefit (TAB) adjustment represents the present value of the federal income tax savings resulting from the tax amortization of an acquired intangible asset over a statutory period. Internal Revenue Code Section 197 allows the cost of certain acquired intangible assets to be amortized for federal income tax purposes. However, not all acquired intangible assets are subject to such amortization tax deductions. Analysts should apply the so-called TAB adjustment to an intangible asset valuation analysis only when it is appropriate. This discussion summarizes what analysts should know before applying the TAB adjustment to an…
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An Alternative to the IPO The popularity of special purpose acquisition companies (SPACs) has been soaring in recent years. There are 35 times as many SPACs operating in 2020 as in 2010, and these companies seem poised for greater exponential growth in the future. While many experts are predicting a continued, rapid increase in SPACs, this article will also examine the factors that could possibly slow SPAC growth and diminish their future prospects. The popularity of special purpose acquisition companies (SPACs) has been soaring in recent years. There are 35 times as many SPACs operating in 2020 as in 2010,…
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What Prospects Believe About Our Pricing is What We Believe About Our Pricing When prospects say, “You’re too expensive” (and some inevitably will), we may have a problem. Because on the one hand, they may be telling us the truth (or their truth). But on the other hand, we think we are worth it. This article identifies two issues, suggests that there may be one impediment, and provides readers with resources on the subject of pricing services. That is an impactful statement. And of course, it is not quite THAT simple. But it goes a long way toward explaining why…