CFOs are eager to make the finance function more efficient and useful. Samantha White, CGMA Magazine senior editor, explains what leading finance functions have in common. To read the full article in CGMA Magazine, click: Six Traits of Leading Finance Functions.
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in Light of LIBOR’s End Appraisal and litigation support professionals consider various rates to use as part of a financial model, including LIBOR. Near the end of July 2017, British banking regulators made waves in the business world by announcing the end of the London Interbank Offered Rate, or LIBOR, by the end of 2021. LIBOR’s end will mean the loss of a financial benchmark that is not only ubiquitous in commerce, but a valuable tool in creating discount rates in financial litigation. Fortunately, the Alternative Reference Rates Committee (ARRC), organized by the Federal Reserve, has already identified alternative benchmarks,…
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Understanding Another Person’s Point of View—A Fundamental Tool of Communication Empathy, when used appropriately is truly amazing. It strengthens and enriches our understanding of others, and enhances our ability to motivate them. Though there is no scientific way to measure the power of empathy, you can feel it when you use it, especially during mediation-type proceedings, when the opposing parties are frozen in their positions on opposite sides of the dispute. In this article, Judge Caprathe shares techniques used to show empathy and how these have helped him mediate conflicts.
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It is difficult to deliver bad news or discuss mistakes, but honesty plays an important part in the development of a workplace that is effective and productive. Eddie Huffman states that, hard truths, delivered well, are necessary for health and growth. To read the full article in CPA Insider, click: How to Encourage Candor in Your Office.
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SEC Official Suggests IPO Paperwork Could Include Arbitration Clauses Michael Piwowar, a Republican member of the Securities and Exchange Commission, has suggested that companies be allowed to include mandatory arbitration clauses in paperwork for initial public offerings. To read the full article in Reuters, click: U.S. SEC’s Piwowar Urges Companies to Pursue Mandatory Arbitration Clauses.
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Microsoft Could Provide Early Test of New Lease Accounting Rules Microsoft had said it would adopt new lease accounting rules July 1 instead of waiting for 2019, when the rules take effect. Microsoft’s status as a large, high-profile company means other businesses will study its example. To read the full article in Bloomberg, click: Microsoft Among First to Give Fuller Picture of Lease Situation.
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NACVA Member Survey Findings on Employee Recruitment and Retention Hinge Marketing recently completed a NACVA member survey. In this survey, Dr. Frederiksen learned that NACVA members sought to improve recruiting and retention in their firms. These were the two highest. In addition, gathering insights about how firms approach these challenges, we also asked employee-candidates how they search for and evaluate potential career opportunities. In this article, Dr. Frederiksen provides seven branding tips for aspiring experts.
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The Value of a Business is Not Always What it Seems (Part II of II) Personal goodwill is taxed at the individual capital gains tax rate, not the higher corporate income tax rate. Therefore, a credible personal goodwill calculation can amount to significant tax savings. One that is not adequately defensible invites risk of an audit. Every personal goodwill calculation is unique to each business, and the management interview is crucial. In this second part of the article, the author discusses issues that arise valuing identifiable intangible assets if goodwill is derived by first valuing personal goodwill, questions to ask…
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Was it a bargain purchase or not? The SEC has reached a $6.2 million settlement with a Big 4 audit firm relating to auditing failures associated with Miller Energy Resources. This post will examine the particulars of the case and provide some observations on fair value accounting that can be gleaned from the SEC settlement order. To read the full article in Mercer Capital’s Financial Reporting Blog, click: $475 Million Bargain Purchase Leads to an SEC Settlement. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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With the second quarter of 2017 in the books, we ran the numbers and sifted through the data to recap all the key info on global PE activity during 2Q. Powered by the PitchBook Platform, our quarter-end datagraphic looks at fundraising (which had a huge quarter), deal and exit activity, top investors and more. To read the full article in PitchBook, click: A Visual Recap of Global PE Activity in 2Q 2017.
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Determining the proper tax treatment of expenditures for tangible property can be difficult—and for taxpayers with a large number of expenditures, statistical sampling can be the only practical way to review and document these expenses. Here are examples of how sampling can help taxpayers determine the proper depreciation amount for fixed assets. To read the full article in The Tax Adviser, click: Statistical Sampling and Resulting Allocations Under Fixed-Asset Studies.
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The Value of a Business is Not Always What it Seems (Part I of II) Personal goodwill is taxed at the individual capital gains tax rate, not the higher corporate income tax rate. Therefore, a credible personal goodwill calculation can amount to significant tax savings. One that is not adequately defensible invites risk of an audit. Every personal goodwill calculation is unique to each business, and the management interview is crucial. In this first of a two-part article, the author discusses when goodwill may need to be calculated and answers whether goodwill is only present if a key employee is…
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Physician On-Call Services This article focuses on physician on-call services and issues that valuation professionals must anticipate and consider in such an engagement. The article is a distillation of an in-depth article published in The Value Examiner July/August 2017 issue. In that issue, the authors also discuss classification and valuation of compensation for physician services and valuation of medical director compensation arrangements.
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In valuing a FinTech company, attention need be given to external factors such as unique industry dynamics and the regulatory environment as well as internal company factors such as risk exposure and shareholder preferences. Hosted by Jay D. Wilson Jr., CFA, ASA, CBA, this webinar identifies the key value drivers for an early-stage FinTech company for investors, entrepreneurs, and potential partners. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Webinar: How to Value an Early-Stage FinTech Company. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the…
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Advising Clients on Charitable Legacies Many individuals desire to make charitable bequests but are not certain how to do so or how they work. This is an area where a CPA can offer valuable assistance. There are many issues—some tax-related, some not—but the overriding concern is the client’s desire to do some good with what they have accumulated. Sid Kess, CPA, and Edward Mendlowitz, CPA, PFS, share ways CPAs can increase their value to clients who are charitably minded. To read the full article in The CPA Journal, click: Assisting Individuals with Charitable Legacies.
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Running a successful tax practice is about more than acknowledging the technology du jour. It is about knowing which technologies make the most sense for you and using them to their fullest potential. Learn about three technologies you cannot afford to ignore in your practice. To read the full article in AICPA Insights, click: Three Tax Technologies you Should Not Ignore.
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Given a Fixed Amount of EBITDA After reading Steve Egna’s article in the April 12, 2017 issue of QuickRead Buzz, in which he suggests that a larger multiple of EBITDA is realized as the number of employees of the selling business increases, the author considered testing whether that same approach could help explain why a certain amount of EBITDA would generate multiple amounts of MVIC. In this article, the author shares his findings.
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and its Application to Enterprise Valuation The value of a firm must equal the value of the claims on its assets. In practice, this is generally expressed as the value FIRM = value DEBT + value EQUITY. Similarly, in a balance sheet prepared in accordance with generally accepted accounting principles (GAAP), assets = liabilities and equity. By comparison, an economic balance sheet is constructed using market values rather than amounts reported in accordance with GAAP, items included are classified as operating, non-operating, debt or equity-related rather than current or long-term, asset or liability, and it includes economic assets and liabilities…
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The Association of International Certified Professional Accountants and CPA.com are launching an early-stage company accelerator to promote innovation and give the profession early insight into disruptive technologies. The Association and CPA.com Startup Accelerator will provide funding and other support to as many as five early-stage companies that emerge from a competition. To read the full article in the Journal of Accountancy, click: Association, CPA.com Launch “Shark Tank” for Startups.
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U.S. has Leeway on Debt Limit, Economists Say Treasury Secretary Steven Mnuchin has called on Congress to raise the national debt limit before its August recess, but the federal government will not face a crisis if that does not happen, experts say. The U.S. has enough borrowing power to carry it through “sometime in early September,” economists at Wells Fargo said. To read the full article in Bloomberg Markets, click: U.S. Has Until at Least September to Lift Debt Cap, Analysts Say.