Help Clients Kick-Start Their Charitable Efforts Here is a look at questions to ask and tactics to consider while working with clients who want to engage in charitable giving. Among other strategies, clients may want to consider making multiyear gifts or donating to international causes. The Adviser’s Guide to Financial and Estate Planning, Volume 1, has an entire chapter dedicated to helping you learn about charitable giving strategies. To read the full article in WealthManagement, click: Tips for Giving While Living.
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Fraudulent Billing/Cash Disbursement Schemes (Part II of III) This article represents the second of a three-part series discussing the potential for embezzlement within a firm or organization by its Accountant Bookkeeper Office Manager (ABOM). Part one discussed how the ABOM could mishandle incoming cash receipts to commit fraud. This article will be discussing how an ABOM can mishandle outgoing cash disbursements to commit fraud. There are several fraudulent cash disbursement schemes that can take place within a firm or organization. These schemes fall under two main categories: billing schemes and check tampering schemes. It is possible for these schemes to…
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Case Law Four cases are presented in this article that provide valuation, litigation support professionals, and M&A advisors insight regarding how courts are addressing damages claims, challenges to experts, appraisal action challenges, and claims of fraud and breach of contract in connection with M&A transactions. Although the cases are from Delaware and California, they provide insight for readers to use in their practices.
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We have recently discussed the changing dynamics of the IPO market and startups’ shifting perspectives in regards to going public. Public offerings have not all gone wrong this year, but latest rounds of unicorn IPO flops appear to have dampened some investors’ outlook on the traditional IPO route. Nevertheless, unicorn investors still need liquidity and are turning to creative ways to get the IPO pipeline flowing again. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Social Capital’s Backdoor Unicorn IPO. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To…
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Personal commitment and synchronized teamwork is what it takes to be an active member of professional associations. The work may not be physically challenging, but when you partner together and work towards a similar goal, you can achieve great things. To read the full article in CPA Practice Advisor, click: Five Reasons You Should Join a Professional Association.
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Effective Exercises for Diversity Training Evidence suggests diversity training that asks employees to see the world from others’ perspectives or to form specific goals is especially effective. The personalities of employees might affect which techniques provide the best results for them. To read the full article in Harvard Business Review, click: Two Types of Diversity Training that Really Work.
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Should You? In this article, Dr. Frederiksen discusses why firms are outsourcing and answers five questions regarding when it makes sense to outsource this service.
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Cash Receipts (Part I of III) This article represents the first of a three-part series discussing the potential for embezzlement within an organization by its accountant/bookkeeper/office manager (ABOM). ABOM is considered one of the most trusted employees within an organization, making them prime candidates to commit internal fraud. On a daily basis, an ABOM may be dealing with incoming cash receipts, cash disbursements, and processing payroll, including employee benefits programs and expense report reimbursements. This article, specifically, will address the ABOM’s ability to embezzle funds related to cash receipts using skimming and larceny techniques.
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Due to “extremely low” demand and high costs, the Treasury Department announced that it is ending the myRA retirement savings program. Treasury says it is notifying participants about the ending of the program and giving them information on how to move their myRA savings into Roth IRAs. To read the full article in The Tax Adviser, click: Treasury Ends myRA Retirement Savings Program.
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Legitimate customers and transactions are being hit hard by a system designed to stem the flow of dirty money. Many international banks have pulled in their horns since the global financial crisis, lending less and shedding customers. To read the full article in The Economist, click: The Unintended Effects of Rules Aimed at Stopping Financial Crimes.
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Beware of conflicts and gossip, which can damage your career. Office gossip and drama can lead to professional discord, reduced productivity, lower morale, and a breakdown of teamwork, collaboration, and good customer service. Cheryl Meyer explains the pitfalls of this potentially disastrous practice. To read the full article in AICPA, click: How to Steer Clear of Office Drama.
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Practical Applications in Unimpeachable Neutrality Expert witnesses in the fields of forensic accounting, matrimonial litigation, and business valuation must possess a thorough understanding of the applicable standards, case law, evidentiary rules, and regulations specific to each engagement to effectively help the court understand the facts and evidence. The already daunting task of interpreting these rules becomes increasingly fleeting when those parameters act as moving targets whose relevance or obsolescence may be subject to change in an instant based upon legal decisions, newly promulgated standards, or pronouncements. This third article from the unimpeachable neutrality series, discusses 10 time tested and unimpeachable…
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Which Measure is Best for Normalization? Analysts face a potentially major issue when using EBT as the starting point for normalizing future earnings using traditional business valuation fundamentals. An issue arises when assumptions used in forecasting key expenses for normalized earnings differ from the way those expenses were calculated in the historical EBT. Key expenses that can have a large impact on ultimate value include non-cash items and related capital expenditures as well as interest expense and debt assumptions. This overview points out the reasons why traditional methods may not be viable for every situation. For a more detailed discussion…
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The future of the fiduciary rule is up for grabs, again, and clients, advisers, and firms are jumping in to make their voices heard at a crucial moment. Via a public commentary board, the Department of Labor is hearing feedback on whether it should make changes to the fiduciary rule and delay the regulation’s second stage of implementation. Scroll through to see some of the most passionate and insightful comments filed thus far. To read the full article in FinancialPlanning, click: Fiduciary Rule Final Stand: ‘Please Rethink This’.
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Understanding the fractions rule can enable tax-exempt organizations to invest in partnerships that hold interests in debt-financed real property without being subject to the tax on unrelated business income under Section 512. Michael Hoffman, CPA, Washington, explains. To read the full article in The Tax Advisor, click: What Proposed Regulations on the Fractions Rule Mean for Tax-Exempt Organizations.
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Questions for a Retirement-Preparedness Gut Check Pre-retirees should examine whether they direct too much money to goals other than retirement savings, take advantage of employer matching, and structure savings so enough pretax income is set aside. Jonathan Clements states that other important considerations include how retirees will spend time once they stop working and whether there is a danger of outliving savings. To read the full article in HumbleDollar, click: Retirement: 10 Questions to Ask.
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A Unique Assessment of Commercial Damages Business interruption is a form of commercial damages that may include both breach of contract and torts. While it is not common for financial experts to be hired in business interruption situations, some claims require their expertise. Unlike a traditional lost profit analysis, business interruption calculations are unique. Any expert asked to make such an analysis should consider lost profits (projected revenue for the loss period less saved expenses), non-saved expenses that are ongoing during the interruption, and extra or expedited expenses the business has to incur to reopen. This article addresses the work…
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When Calculating the Exemplary Damages Cap In a recent Texas Court of Appeals case, the jury awarded plaintiff $15,000,000 in exemplary damages; the Court reduced this amount citing section 41.008(b)(1) of the Texas Civil Practice & Remedies Code, which caps exemplary damages at two times the amount of “economic damages,” plus up to $750,000 in non-economic damages. The question on appeal was whether the jury’s finding of “pecuniary loss” was the same as “economic damages” for purposes of Chapter 41. The Court emphasized the word “actual” in the statutory definition of “economic damages”. The decision features a dissent from Justice…
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In Mercer Capital’s most recent issue of Portfolio Valuation: Private Equity and Venture Capital Marks and Trends, they provide a brief digest and commentary of some of the most relevant market trends influencing the fair value of private equity and venture capital portfolio investments. Key highlights are covered in their Third Quarter 2017 newsletter. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Trends Influencing the Fair Value of Private Equity and Venture Capital Portfolio Investments. 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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The FASB is conducting early stage research about developing an accounting standard for digital currency and the technology that underpins it. With the use of digital currency increasing, proponents say inconsistent accounting practices are becoming a problem. To read the full article in Thomson Reuters, click: Bitcoin Seeks Recognition from U.S. GAAP.