With rapid advances in technology transforming companies of all types, the demand is increasing for CPA firms to understand how new technologies are affecting clients and what clients must do to adjust their processes and practices to make the most of technological innovation while also mitigating risk. To read the full article in the Journal of Accountancy, click: Furious Rush of Digital Disruption Creates Opportunities for CPAs to Help Clients.
-
-
Why Attorneys Tend to Overvalue Their Cases and What to Do! Research indicates that most lawyers over value their cases, and what is even more fascinating, it does not matter how long the attorney has been in practice! There are a number of reasons over valuation occurs; sometimes the answer is just that the attorney did not spend enough time reviewing the case, or failed to consider getting a second opinion. Then there are significant psychological factors that influence case valuation: anchoring, confirmation bias, and just plain old over confidence. The good news is there are some very simple steps…
-
Adherence to Development and Reporting Standards in Family Law Litigation Family law practitioners deal with a host of complexities when resolving matrimonial disputes. In high net worth cases, financial considerations soon become paramount. Often the largest financial asset on the marital balance sheet is an interest in a closely held business controlled and operated by the family or single spouse. In these cases, a significant portion of the marital estate and, accordingly, the key to a party’s financial future rests on the results of a proper valuation. This article discusses the importance of development and reporting standards in litigation engagements.
-
This week, Travis Harms, Mercer Capital’s Financial Reporting Valuation Group lead, features two stories and one study, each of which highlights the need to analyze venture transactions in their entirety, rather than focusing solely on price. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Accountability, Rights, and Discipline in Early-Stage Companies. 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/.
-
Although some types of entities have required tax years, not all do. Karen Messner helps you find out how to adopt a tax year other than a calendar year by planning ahead. To read the full article in the The Tax Adviser, click: Accounting Period Planning may Provide Preferred Year.
-
The rise in firm discontinuances and sales brings with it a host of practitioner concerns regarding independence, confidentiality, and the transfer of client files. To address these concerns and provide specific guidance, the Professional Ethics Executive Committee issued two new interpretations of the AICPA Code of Professional Conduct (the Code) and revised an existing interpretation. April Sherman, manager at AICPA Professional Ethics Division, explains. To read the full article in the Journal of Accountancy, click: How to Comply with the New AICPA Ethics Standards for M&A.
-
Authored by: James R. Hitchner; R. James Alerding; Joshua B. Angell; and Katherine E. Morris The author provides a review of Discount for Lack of Marketability Guide and Toolkit, authored by James Hitchner; R. James Alerding; Joshua B. Angell; and Katherine E. Morris.
-
A Decision that Illustrates the Importance of Appraiser Independence To successfully work in the field of business valuation, appraisers must perform assignments with impartiality, objectivity, and independence, and without consideration of personal interests or the interests of those who hired them. Should such bias be found, the appraisal could be considered worthless and the expert’s reputation damaged, with even worse ramifications for the client. A recent Tax Court case illustrates this point.
-
Some valuation practitioners use a normalized risk-free rate in determining the cost of capital. This can inflate the cost of equity by up to a couple of percentage points, which in turn depresses valuation multiples. Is normalizing the risk-free rate a rational, reasonable practice? In today’s guest post, Chris Mercer suggests the answer is an emphatic no. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Should Business Appraisers “Normalize” Long-Term Treasury Rates When Building Equity Discount Rates? This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the…
-
As many firms are struggling to recruit and retain qualified people, some practitioners have found that value pricing has made their working environment more efficient and more attractive to staff members. Value pricing can keep your team happier and make your firm more profitable. To read the full article in the Journal of Accountancy, click: How Implementing Value Pricing Can Help Your Staff Get More Done.
-
Navigating the New Social Security Rules Changes to Social Security rules have eliminated the file-and-suspend strategy for younger couples. However, couples should still coordinate their claiming strategies, and there are various rules about disability benefits and divorced spouses to keep in mind. PFP/PFS section members can listen to this podcast on the latest Social Security developments by Ted Sarenski, CPA, PFS. To read the full article in InvestmentNews, click: How to Maximize Social Security Benefits Under New Rules.
-
Creating Visibility and Personal Brand Recognition In this article, Dr. Frederiksen provides seven branding tips for aspiring experts.
-
and other Court Cases for Valuation and Litigation Support Professionals Valuation practitioners may want to spend a few hours reading a recent U.S. Tax Court case where the valuation of intangible assets was squarely addressed. This QuickRead article highlights the facts and three issues addressed in the decision.
-
Applications for patents in the U.S. have nearly tripled over the past 20 years. Perhaps increased innovation, more cutthroat competitive practices, and an uptick in litigious activity surrounding idea ownership are to credit. One thing that is clear is that there are many implications of filing a patent beyond just its ability to enforce exclusivity of an idea—for founders and investors alike. To read the full article in Mercer Capital’s Financial Reporting Blog, click: The Valuation Implications of Filing (or Not) a Patent. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe…
-
Ditch the 4 Percent Rule. Here’s How to Handle Your Retirement Withdrawals It might be time to scrap the 4% retirement rule, as it could be unsafe if there are large portfolio losses in the early years of retirement. Here are three factors to weigh when developing a financial plan. To read the full article in CNBC, click: An Alternative to the 4% Rule.
-
The Benefits of Setting Up a Trusteed IRA Trusteed individual retirement accounts are not right for every circumstance, but they can provide additional control over assets. For example, trusteed IRAs can help clients determine what happens to assets after the death of a beneficiary, which can be especially useful for clients who have been married multiple times. Talk with your clients about trusteed and other types of IRAs. To read the full article in FinancialPlanning, click: When You Should Establish an IRA as a Trust.
-
Greater Disruption and Change Awaits the Financial Services Industry FinTech, or financial technology, has disrupted the financing industry. The FinTech revolution has not only changed the financial services industry, but it has also changed specific sectors, including: retail banking, lending and financing, payments and transfers, wealth and asset management, markets and exchanges, insurance, and blockchain transactions, just to name a few. It will continue to be vital for those who work in such sectors to learn how the FinTech revolution affects them immediately, as well as their future careers and business dealings. This article traces and history and shares the…
-
Part II of II This is a two-part article. In this second part, the authors discuss valuation and the approaches used to value contingent assets and liabilities. Read Part I here.
-
Earnings season will get underway next week. Banks should live up to their reputation as being boring albeit with pretty good results. Loan growth looks as though it will be modest, but net interest margins should increase following the March and June rate hikes and the accompanying move higher in the London Interbank Offered Rate. Jeff Davis, CFA, managing director of Mercer Capital’s Financial Institutions Group, discusses this topic. To read the full article in Mercer Capital’s Financial Reporting Blog, click: EBITDA and Credit Stretching. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. …
-
What to do With an Underperforming Life Insurance Policy Several options exist for handling a universal life insurance policy that is no longer serving a client’s needs. In this real-world example, four experts offer advice on what they would do with such a policy, with some of them recommending that the policy be surrendered. To read the full article in WealthManagement, click: Surrender a Universal Life Insurance Policy.