Believe it or not, Hawaii’s top marginal tax rate is 367,100 percent. That makes France’s 75 percent and 100 percent tax rates seem like a downright bargain. A new paper released by the University of Hawaii at Hilo, Texas Tech University and The Institute for Business and Finance Research details how state tax laws in Hawaii create a tax cliff of epic proportions where a single extra dollar in income can trigger marginal tax rates that are nothing short of income confiscation. The paper titled, Marginal Tax Rates Around the Hawaii Itemized Deduction Cliff, details how a single dollar that…
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New changes to the law could mean new client service opportunities The Securities and Exchange Commission (SEC) has issued a No Action Letter that allows unlicensed professionals to receive commissions for the sale of privately held securities in a sales transaction.
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Use of photography in forensic and valuation engagements The purpose of this article is to provide the CPA/expert a brief introduction to the use of photography in a valuation or forensic engagement. It is not intended to be an all-inclusive training manual in forensic photography. Criminal forensic photographic procedures may, due to the differences between civil and criminal law, be materially different.
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After the media gaffe that disgraced LA Clippers owner, Donald Sterling, the mogul was fined $2.5 million by the NBA. There’s a misconception that he’s being required to sell the team as part of his lifetime ban from the sport, but that’s not actually true. NBA commissioner, Adam Silver, is asking the NBA Board of Governors to force Sterling to sell, which requires three quarters of the league’s owners to sign on. Common sense would ask that if Sterling has been banned from the league for life, how is it possible to own and operate a team within it? Wouldn’t…
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Four things valuators should know about medical claims and coding In this second installment of his review of medical claims coding, Mr. Moffatt sets forth his final two examples that explain the unique circumstances of the medical practice revenue cycle that affect cash flow and how they relate to the valuation of a medical practice. Part 1 of this article was published on March 4, 2014.
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Good communication skills are essential for the expert Witness Expert witnesses and litigation support professionals generally do not consider the importance of communication skill training and practice as part of their preparation process. Communication is the third leg of expert witness preparation and separates the average witness from the great witness.
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While mergers and acquisitions within the healthcare sector are expected to grow this year, the bulk of the deals will likely involve targets such as large, outpatient care centers and allied healthcare facilities, as opposed to large in-patient hospitals. This analysis comes as part of a white paper recently released by Ponder & Co. Also included were projections that nonprofit institutions will be the more popular target, with a renewed emphasis on combining regional systems and another tough year for the traditional, community hospital. You can get the full details at the link below. [button color=”blue” link=”http://www.ponderco.com/downloads/Ponder-MA-White-Paper-Q1-2014.pdf” target=”_blank” font=”arial” align=”left”]Read…
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Professor, Aswath Damodaran, of the NYU Stern School of Business has released his 2014 Data Page online. Updated annually and exhaustively researched, the data page offers in-depth information on 41,000 companies in 131 worldwide markets, including measures of operation, leverage, pricing, equity risk premiums and country risk. One of the major changes to this year’s data page was the switch from Value Line to Morningstar, Bloomberg and Capital IQ for all U.S. firms. You can review the data page at the link below. [button color=”blue” link=”http://people.stern.nyu.edu/adamodar/New_Home_Page/data.html” target=”_blank” font=”arial” align=”left”]Read Full Article[/button]
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A two-way street In this article, Britt Madden and Britt Madden, Jr. respond to Jim Hitchner’s July 2013 QuickRead article on “Rigging the Cost of Equity”. The authors contend that the rigging is more likely the result of a lack of understanding the current status of small business in the present economy, which has left it forever changed.
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Suggestions for business valuation professionals thinking about retiring This article contains some tips from a long-time practitioner to business valuators who are reaching retirement age, but are not ready to retire and just play golf.
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The International Forum of Independent Audit Regulators (IFIAR) recently released its second annual Survey of Inspection Findings for the year 2013. The report includes findings from IFIAR members’ (international audit regulators independent of the audit profession) inspections of audit firms, primarily those associated with the largest international audit firm networks. Findings from audit firm activities were reported from three categories: audits of listed public interest entities (PIE), audits of systemically important financial institutions (SIFI) and global systemically important banks (G-SIB). The highest number of findings for PIEs included, fair value measurement, internal control testing, and adequacy of financial statements and…
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Expert witness do’s and don’ts In this article, Ted Blodgett offers 10 do’s and don’ts to consider when serving as an expert witness.
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(…and possibly their valuation consultant?) Rev. Proc. 2014-18 provides a simplified method for certain taxpayers to obtain an extension to elect portability under Code Sec. 2010(c)(5)(A). This method allows a widow or widower to apply a deceased spouses unused exclusion (DSUE) amount to the surviving spouse’s subsequent transfers during life or at death. In these situations, the ability to file and use the DSUE amount is a must.
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Comcast recently filed its public interest statement with the Federal Communications Commission (FCC) explaining how the American public will benefit from its $45 billion planned merger with Time Warner Cable. Comcast claims the merger is necessary because it can’t compete with the likes of Google, Apple, Verizon and Netflix–companies with a national footprint. On the flipside, over 50 public interest groups, including MoveOn.org and Daily Kos, have signed a petition stating that a merger would give Comcast unprecedented power to raise broadband rates for a significant portion of the country and gatekeeper power over too much commercial and private activity.…
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Forensic accounting examinations of not-for-profit entities The keys to performing a successful expert forensic accounting fraud engagement is to gain an understanding of the present internal control system, including policies [or lack thereof] in place to prevent fraud and abuse, as well as other key steps and procedures, as John J. DeLuca outlines in this article.
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Management techniques from new China Sun Tzu, the ancient Chinese warlord, wrote the military treatise titled The Art of War. On a lighter note, similar 21st century business management techniques can be found in fortune cookies.
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With Colorado and Washington state legalizing casual use of marijuana, more states considering it and 20 allowing medicinal usage, at least 60 publicly traded entities have scrambled to cash in by offering pot penny stocks. Virtually none emerged through an IPO to avoid disclosure scrutiny. Real estate, marketing and even oil outfits have gotten into the game, either through reverse mergers or declaring a new line of business. Forbes magazine interviews Michael Mona, Jr., CEO of CannaVest, one of the biggest winners at the top of the pot stock bubble. The company surged 1,260 percent in 2013, the year it…
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The average major league baseball (MLB) team today is worth $811 million, up 9 percent from last year. That’s not too bad for being in the middle of the pack. To make it to the top, however, a lucrative deal and strong regional network are essential. For the first time, five teams combine the right ingredients to make it over the $1 billion mark. The increase in value for the teams was more than double the 4.4 percent gain in revenue. To see how the valuations break down for your favorite teams, click the link below. [button color=”blue” link=”http://www.forbes.com/sites/mikeozanian/2014/03/26/baseball-team-values-2014-led-by-new-york-yankees-at-2-5-billion/” target=”_blank”…
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Can private companies really increase their value 80-100 percent by limiting unsystematic (controllable) risks? The November/December 2013 issue of The Value Examiner featured Ken Sanginario’s article entitled, “The Valuation Business: A Strategic Road Map for Success.” In this article, Sanginario answers questions raised by skeptics to make the case that value doubling for private companies is possible.
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The digital age represents both forensic challenge and opportunity Forensic financial analysts can increase their effectiveness and value by expanding their training and knowledge in IT forensics.