A White Paper Detailing Use of the Pluris Database to Develop a DLOM (Part II of III) In this second part, of a three-part series, Marc Vianello examines whether discounts reported in PLURIS DLOM Database are consistent with past changes in SEC Rule 144 required holding periods; How the PLURIS Restricted Stock Discounts Correlate with other reported Metrics; How to use PLURIS Database for Benchmarking; and ...

Appraisals from Real Estate, Machinery and Equipment to Business Valuation: Book Review by Michael D. Pakter The purpose of this book review is to introduce the reader to Shannon P. Pratt’s newest book, co-authored with John Lifflander. For those improbable few business valuation professionals who do not know who Dr. Pratt is, he is the Chairman and CEO of Shannon Pratt Business Valuation, Inc. and Publishe ...

The Tax Rules Were Never Friendlier, But Changes May be on the Way The biggest loophole in the tax code may soon be coming to an end—at least according to the messages sent by the Obama administration and its recent budget proposals. The American Taxpayer Relief Act of 2012 (ATRA) set a whole new tone for most estate plans when it took the dreaded estate tax off the table. However, it is no secret that the ...

A White Paper Detailing Use of the Pluris Database to Develop a DLOM (Part I of III) Business valuation practitioners continue to debate the merits of different databases to develop a discount for lack of marketability (DLOM).  In this first- of a three-part series, Marc Vianello discusses what the Pluris DLOM database is, explores how accurately Pluris transactions are reported, and discusses how the Pluri ...

Under legislation enacted last year, the IRS is required to use private debt collection agencies to collect outstanding inactive tax liabilities.  The IRS has awarded contracts to four companies to participate in the program in spring 2017.  Sally Schreiber, JofA senior editor, explains what this all means. To read the full article in the Journal of Accountancy, click: Private Collection Agencies to Start C ...

With the news media announcing hacks, breaches, or phishing scams virtually every week, cybersecurity has become a major concern for businesses of all sizes.  To recognize National Cybersecurity Month, the AICPA is publishing a series of blog posts on the issue.  In this first post, Susan Pierce has some tips to help CPAs understand five low- or no-cost ways to defend against cybercrime. To read the full ar ...

Goodwill—should it be amortized or not?  That is one of the questions the FASB has wrestled with over the last few years.  Lucas Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, takes us through the changes to this system that are in the works, as the FASB Board made a few tentative decisions regarding the accounting for goodwill impairment for public and private entities. To r ...

The Internal Revenue Service issued three sets of regulations last week that address issues of disguised sales of property by or to a partnership and allocations of excess nonrecourse liabilities to partners.  Alistair Nevius, The Tax Adviser’s editor-in-chief, explains these regulations. To read the full article in The Tax Adviser, click: Disguised-Sale and Partnership Liability Allocation Rules Issued. ...

Areas of high attention for auditors during the 2016 audit cycle will include a new standard on naming the engagement partner as well as internal control over financial reporting.  Ken Tysiac, JofA editorial director, reports that key considerations for auditors in general and auditors of brokers and dealers are discussed in two new publications by the Center for Audit Quality. To read the full article in t ...

Golden parachute payments can lead to significant tax consequences for both the company and the individual.  Lucas Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, discusses strategies to mitigate these tax risks to reduce the likelihood of additional excise taxes. To read the full article in Mercer Capital's Financial Reporting Blog, click: Noncompete Agreements for Section 28 ...

In re Marriage of Schneeweis, 2016 IL. App. 2d No. 140147 Marital law varies from jurisdiction to jurisdiction. In this article, Daniel R. Stefani discusses a recent Illinois Appellate Court case where the issue before the court was whether husband dissipated assets. The term dissipation is defined and the question raised is how much information do you share with your spouse and how that can impact an equit ...

Analysis of Unaudited Financial Statements—Who and How? There has been much discussion within the ESOP community about the “settlement” and its reverberations. As readers are likely aware, the settlement in question refers to the 2014 settlement agreement between GreatBanc Trust Company and the United States Department of Labor (DOL). The terms of the settlement include, among other things, an agreement con ...

How to Encourage Fairness in Negotiations Parties often start with unreasonable offers when negotiating with one another, which can needlessly draw out the resolution process.  Max H. Bazerman and Daniel Kahneman discuss how using final-offer arbitration can encourage all participants to start with more realistic offers. To read the full article in Harvard Business Review, click: How to Make the Other Side ...

Deciding What Type of Foreign Entity to Set up The check-the-box rules that permit taxpayers to determine which form of business entity to create apply to foreign entities as well as domestic.  In this article, Raymond Polantz examines the different tax issues involved in choosing, including tax rate differentials, income deferral and the availability of foreign tax credits. To read the full article in The ...

On Monday, September 26, Chris Mercer presented a webinar in which he examined the recently Proposed Changes to Section 2704 of the Internal Revenue Service Code from business and valuation viewpoints. To download the webinar, slides, and whitepaper from Mercer Capital's Financial Reporting Blog, click: Recent Webinar on Proposed Changes to Section 2704. This article is republished from Mercer Capital's Fin ...

Conduct a Systematic, Structured Research to Get Results How can an existing marketing plan be improved? In this article, Dr. Frederiksen outlines five steps a firm can use to strengthen an existing marketing plan. ...

Ways 16 through 30 (Part II of II) This is the second part of this two-part article where the author presents fifteen other structures owners may want to consider as part of a succession plan. Click here to read part one. ...

“Dr. Expert, here is our theory for the case. Can you tell me if it’s possible?” Anyone see anything wrong with this? Can the lawyer be the one to come up with the theory for the case? Should lawyers run their theory by their experts? Annie Dike explains that whether or not their theory will pass muster under Daubert will depend not on its possibility but, rather, its plausibility. To read the full article ...

Brexit Seen Delivering Brutal but Brief Blow to UK Economy The UK economy is on "a very different path" from that of a few months ago, with business investment and consumer spending due for a short, sharp post-Brexit shock, according to a forecast by the EY Item Club. The organization has slashed its UK growth forecast for 2016 to 0.4% from 2.6% and predicts the pound will be down 15% by year's end. Gwyn To ...

Despite the inhospitable IPO climate, one tech company managed to brave the market with just the right mix of novelty and disruption to garner attention and reap rewards. Madeleine Harrigan, senior financial analyst with Mercer Capital, explains what happened when Twilio, a cloud communications platform designed to help developers add messaging, voice, and video to web and mobile applications, went public o ...