The consistent theme of the Appraisal Foundation’s exposure draft The Measurement and Application of Market Participant Acquisition Premiums is that acquirers do not value control for its own sake, but rather for the tangible economic benefits that can be achieved by the exercise of control.  Travis W. Harms, Mercer Capital Financial Reporting Valuation Group lead, explains the analyses and discusses his vi ...

Tackle the Clutter, but Keep the Good Stuff: 3 Tips for Saving Keepsakes Decluttering has never been more in vogue.  Eliminating extra stuff rewards you with clear shelves and even a clearer mind.  But before you hit delete or put it in the trash bin, Ann Marie Maloney, communications manager at AICPA, says consider these suggestions for what to keep and how to keep it so you can still enjoy it (and identif ...

New Accounting Rules Could Encourage use of Derivatives Changes to accounting rules for derivatives may prompt companies to start using reasonable derivative-based risk-management tools, said Jim Kroeker of the Financial Accounting Standards Board.  Kroeker suggested this was one possible benefit of FASB's proposal for hedge accounting, which could be issued in September. To read the full article in Bloombe ...

Don't Lose This Important Group of Clients The majority of children who inherit money don't retain their parents' advisers.  Joe Sicchitano, from SunTrust Bank, discusses how advisers and clients can take several steps to avoid this outcome, such as proactively communicating and working early to establish a relationship. To read the full article in FinancialPlanning, click: Advisers to Clients: Don’t Hide t ...

Why Valuation isn’t the Only Thing that Matters During an Exit A big mistake that some startup businesses make is doing whatever it takes to maximize their valuation when they exit, writes Michael Morgan, CFO of Tegile Systems.  A single-minded focus on valuation can backfire if the market enters a downturn, he writes. To read the full article in CFO, click: Avoid These Mistakes When Planning an Exit. ...

Wall Street Starts Responding to Robo-Adviser Challenge Big U.S. banks have taken their time figuring out how to deal with robo-advisers, but they're starting to respond.  Some Wall Street banks are rolling out online advisory services, while others are acquiring them or augmenting existing internet platforms.  Jon Marino, Wall Street reporter, explains. To read the full article in CNBC, click: Big Banks ar ...

What is the difference between a company’s total capital value and enterprise value?  The difference between these two concepts is the treatment of cash.  In the following post, Z. Christopher Mercer, founder and CEO of Mercer Capital, examines the effect of cash on the relative valuation multiples of three public companies. To read the full article in Mercer Capital's Financial Reporting Blog, click: Marke ...

Drop the Excuses and Start Networking You're never too busy to build trust with your colleagues or meet new contacts, writes Peter Economy.  You'll miss out on opportunities if you avoid networking events because you think you're too busy or unlikely to meet anyone important. To read the full article in Inc., click: 10 Networking Mistakes That Get in the Way of Your Success. ...

How Some States Treat Net Operating Losses in Reorganizations A number of states still require corporations undergoing a merger or reorganization to meet a continuity-of-business-enterprise test before they can carry over net operating losses, a rule that hasn't been in effect federally since the 1954 Internal Revenue Code was enacted.  Ann Holley and Caralee Hall explain. To read the full article in The Ta ...

Jeff K. Davis, managing director of Mercer Capital’s Financial Institutions Group, attended Creditflux’s private credit conference in New York a couple of days before the Brexit vote.  He explains that there was not much concern mentioned among mostly U.S. credit investors about it as a market or economic catalyst; nor was there much concern expressed about an aging credit cycle. To read the full article in ...

Hidden Headaches of Jointly Owned Annuities Annuities are considered wonderful vehicles for savers, no more so than for married couples.  The opportunity to obtain tax-deferred growth in a non-qualified deferred annuity is a key feature, particularly for individuals in high tax brackets who have already maxed out other available tax shelters.  However, annuities present a significant complication.  Michael ...

Brexit Market Losses Reached a Record $2T Global markets lost more than $2 trillion in paper wealth following news that the UK had voted to leave the EU.  That made the largest single-day drop in history, surpassing a $1.9 trillion sell-off during the financial crisis in September 2008.  Edward Krudy describes what happened. To read the full article in Reuters, click: Post-Brexit Global Equity Loss of Over ...

Guidelines Released for Employee Wellness Programs The Equal Employment Opportunity Commission has released guidelines for structuring employee wellness programs that adhere to health privacy regulations and anti-discrimination rules.  Employers should notify workers about how their health data will be used and encrypt sensitive information to ensure confidentiality.  Bertha Coombs, CNBC reporter, also sugg ...

One Way to Address Succession Issues With leaders from the baby-boom generation retiring, the CPA profession is looking for new leaders to step forward.  This has increased the urgency around retaining and developing women in leadership positions in the profession.  Ken Tysiac, JofA editorial director, reports. To read the full article in the Journal of Accountancy, click: Succession Issues Likely to Fuel U ...

Three Pointers for Choosing a Company Retirement Plan Simple IRAs and 401(k)s are typically the best retirement-plan options for companies with more than 10 or 15 employees.  Kathy Kristoff, finance writer, explores what to consider when setting up such plans, including the safe-harbor provision and the discrimination tests that apply to 401(k) plans. To read the full article in Inc., click: Pick the Right ...

Accounting-Related Class-Action Suits Rose In 2015 The number of securities class-action lawsuits related to accounting rose to a four-year high last year, with 71 actions filed, according to a study from Cornerstone Research.  The total value of settlements in these cases also rose significantly, surpassing $2.6 billion.  Michael Greene explains that these cases often involve allegations of internal-contro ...

The Appraisal Practice Board of the Appraisal Foundation released The Valuation of Customer-Related Assets.  As Karolina Calhoun, senior financial analyst with Mercer Capital, explains, the non-authoritative best practices guidance elaborates on valuation approaches and methodologies that can be used to measure fair value of customer-related intangible assets. To read the full article in Mercer Capital's Fi ...

Forum Discusses Future State of the IRS Nina Olson, the national taxpayer advocate, heard from tax practitioners and taxpayer groups on how the Internal Revenue Service can modernize its taxpayer services.  Troy Lewis, chair of the AICPA's Tax Executive Committee, called for better training and technology and IRS cooperation with stakeholders.  Ann Marie Maloney, AICPA communications manager, reports. To re ...

The Benefits of Active Listening Practicing active listening can be difficult in the distraction-filled business world, but it's critical for engaging employees and letting them know you value their ideas and opinions.  Managers should still ask for input and feedback from their direct reports even if they aren't sure they will be able to fix the issues that are raised.  Samantha White, CGMA Magazine senior ...

The regulator says the firm had "widespread failures" in its anti-money laundering programs for both its employee and independent channels.  This is the largest penalty the regulator has dished out for that type of infraction, describes Andrew Welsch, senior editor of On Wall Street. To read the full article in Financial Planning, click: FINRA Fines Raymond James Record $17M for Compliance Failures. ...