Accounting Standards Update 2016-01 has generally flown under the radar since it was released almost two years ago.  However, this accounting update has the potential to significantly affect financial reporting by public and private companies with minority equity investments—including corporate entities with a portfolio of venture capital investments.  This whitepaper provides an overview of the accounting ...

Retirees with multiple retirement accounts are advised to have a tax-efficient way of tapping into these accounts to minimize the tax bite, writes Morningstar's Christine Benz.  Retirees who have reached the age of 70 1/2 should take required minimum distributions from tax-deferred accounts, while those who are younger should draw from their taxable accounts, selling assets with the highest cost basis first ...

Is there an inexpensive, easy-to-use, third-party add-on solution for achieving drillable financial statements when your small business accounting system does not offer that functionality? To read the full article in the Journal of Accountancy, click: Accounting and ERP Systems: A Look Inside Drillable Financial Statements. ...

Accounting Standards Update 2016-01 has generally flown under the radar since it was released almost two years ago.  However, this accounting update has the potential to significantly affect financial reporting.  Mercer Capital’s forthcoming whitepaper on ASU 2016-01 will provide an overview of the accounting standards changes as they pertain to companies with equity investments and a few best practice cons ...

Officials at the SEC and FINRA have been talking a lot lately about how they have been ramping up their use of sophisticated technologies to root out questionable conduct among the firms they regulate.  It turns out that they are expecting advisors and brokers to do the same. To read the full article in FinancialPlanning, click: Regulators Want Firms to Ramp Up Fintech Accountability. ...

Even firms that believe they are too small to matter should think again.  If a cyberattack happens at the firm's outsourced CRM partner, portfolio management vendor or custodian, and clients' personal information is compromised, where is your client going to turn first to demand an explanation? To read the full article in FinancialPlanning, click: When Your Vendor is Hacked, Doing Nothing Won't Cut it. ...

In Barron’s November 20 cover story, “The Trouble with Unicorns,” Alex Eule discusses some of the finer points of venture-stage valuation that are often overlooked in the press.  Travis Harms, Mercer Capital’s Financial Reporting Valuation Group Lead, explains that this article is prompted by the dual observations that (1) a large number of venture-backed companies are achieving unicorn status, and (2) desp ...

Priding itself on being a technology company first, Betterment has learned it needs a deeper human touch to sustain its advisor platform.  RIAs are often impressed by the slick interface of Betterment for Advisors, its contemporary user experience and the way it helps speed onboarding and back office tasks.  But, the young firm can’t scale on technology alone. To read the full article in FinancialPlanning, ...

Clients are boosting their cash positions by taking gains off the table as they hedge against the possibility of a selloff, according to the latest Retirement Advisor Confidence Index—Financial Planning’s barometer of business conditions for wealth managers. To read the full article in FinancialPlanning, click: Clients Build Defensive Cash Positions Even as Bullishness Rises. ...

Key Strategies and Steps In the November 2, 2017 article, the author shared some thoughts on what to avoid when developing your website. In this article, the author focuses on the positive: strategies and steps to get you where you want to go. ...

In this week’s blog post, we present a select reading list that has helped us keep up with recent legislative developments around equity and executive compensation. To read the full article in Mercer Capital's Financial Reporting Blog, click: Win Some, and Then Some: Equity Compensation Tax Reform. This article is republished from Mercer Capital's Financial Reporting Blog.  It is reprinted with permission.  ...

In an effort to reduce identity theft, the IRS issued proposed regulations that would permit employers to use truncated taxpayer identification numbers (TTINs) on Forms W-2, Wage and Tax Statement, issued to employees. To read the full article in The Tax Adviser, click: Rules Would Allow Truncated Taxpayer IDs on Forms W-2. ...

Why Annual Medicare Coverage Reviews Benefit Clients Annual reviews can ensure clients who are Medicare beneficiaries have the coverage they need.  During the Medicare Open Enrollment period, which starts Oct. 15, clients can select different prescription drug coverage, move to a Medicare Advantage plan, or make other changes to their coverage.  PFP/PFS Section members can access over 100 ready-to-go, clien ...

For public companies, it is increasingly necessary to disclose a preliminary allocation of purchase price in the 10-Q or 10-K immediately following the closing date.  Although M&A activity slowed in the first nine months of 2017 compared to 2016, valuation multiples have continued to rise and major stock market indices marched steadily higher.  Lucas Parris, senior member of Mercer Capital’s Financial R ...

A taxpayer cannot blame tax preparation software for inaccuracies that lead to penalties.  A recent Tax Court case provides a cautionary tale for taxpayers who rely on do-it-yourself tax preparation software to prepare their tax returns.  Craig Smalley provides some insight into this. To read the full article in The Tax Adviser, click: Reliance on Tax Software Does Not Let Taxpayer Off the Hook. ...

Republican lawmakers released a framework for tax reform, announcing that their goals are to cut tax rates, simplify the Internal Revenue Code, and provide a more competitive environment for business.  The framework generally reiterates proposals made in April.  Alistair Nevius, JofA’s editor in chief, explains. To read the full article in the Journal of Accountancy, click: Republicans Unveil Tax Reform Fra ...

What Tax Reform Could Mean for Annuities Republican lawmakers have said a tax overhaul framework would retain incentives meant to encourage retirement security, but uncertainty remains about the direction that reform will take.  This article summarizes several ways changes in federal tax laws could affect annuities, charitable giving, and other aspects of retirement planning. To read the full article in Thi ...

Creativity is a very 21st century virtue.  Relying on your skills as a technician does not seem like a very good idea in the nascent age of AI, regardless of your field.  But being able to generate innovative and imaginative ideas can mark you out as a star, a shining goose laying golden eggs. To read the full article in Management Today, click: Four Ways to Generate Ideas Fast. ...

Preparing for Clients’ Cognitive Decline Older clients may experience cognitive decline and memory problems that can lead to loneliness and other negative emotions.  Understanding the ways in which clients' cognition may change—and helping them plan for intellectually stimulating activities—can lead to better outcomes in retirement. To read the full article in the Financial Advisor, click: This is Your Brai ...

On June 1, 2017 the Public Company Accounting Oversight Board (PCAOB) adopted a new auditing standard to provide additional information to investors.  The new standard received approval from the Securities and Exchange Commission on October 23, 2017.  In this post, Rohan Bose, financial analyst with Mercer Capital, summarizes several of the major changes coming to audit reports in the near future. To read t ...