This blog outlines some recent changes to the impairment testing regime which provides corporate finance managers with periodic updates and commentary around several topics including impairment testing.  Lucas Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, provides some insight as to what impact this may have. To read the full article in Mercer Capital's Financial Reporting B ...

Use Big Data to Improve Performance Using big data to inform business decisions can give organizations an edge over their competitors, IBM Vice President Paul Zikopoulos said Tuesday at the AICPA's spring council meeting.  Ken Tysiac, JofA editorial director, describes how to start integrating data analytics into your plans. To read the full article in the Journal of Accountancy, click: IBM Big Data Expert ...

Data Analysis Skills Lacking Among Finance Teams Better training and better hiring practices can help organizations make up for a skills gap related to data analysis.  Keeping pace with rapid changes in technology is a cause of concern amongst CFOs.  So, too, is talent management—finding good talent, keeping it, and nurturing it.  Neil Amato, CGMA Magazine senior editor, explains. To read the full article i ...

CPA Firms Evolving in a Changing Marketplace Technology, specialization, succession issues, and other factors are combining to change the marketplace for CPA firms.  Ken Tysiac, JofA editorial director, explains how focusing on culture, talent, and clients can help firms evolve along with the changes. To read the full article in Journal of Accountancy, click: How CPA Firms can Evolve for Continued Success. ...

Fed Bolsters its Focus on Financial Stability The Federal Reserve has expanded its financial-policy office to include the Division of Financial Stability in an attempt to spot vulnerabilities in the U.S. financial system.  "The change reflects the growth in responsibilities and staffing associated with the board's commitment to identifying and analyzing risks to financial stability and to developing and eva ...

PCAOB Proposes Revised Changes to Auditor's Reporting Model The Public Company Accounting Oversight Board voted Wednesday to propose revised changes to a standard that would modify the auditor's reporting model to give investors more information.  Ken Tysiac, JofA editorial director, discusses that the proposal comes in response to comments from the public. To read the full article in Journal of Accountancy ...

Dell Inc. engaged in a management buyout (“MBO”) in October 2013 that effectively took the Company private, leaving Michael Dell in control (75% of its stock) with a financial sponsor (25% of its stock).  This week, Vice Chancellor J. Travis Laster of the Delaware Court of Chancery filed an opinion in In Re: Appraisal of Dell Inc. determining the fair value of the dissenters’ shares.  This post looks to see ...

Don't Let Clients Fall into This Social Security Tax Trap Social Security recipients may face disproportionately high tax rates because of the way the IRS calculates income with respect to Social Security.  So-called combined income includes adjusted gross income as well as tax-free income, half of Social Security income and some add-ons.  Paul Norr, certified financial planner with Bucks County Financial P ...

U.S. Dollar's Dominance Seen Compounding Global Debt Problem The biggest-ever burden of peacetime debt worldwide, paired with the U.S. dollar's sustained role as the dominant currency, is raising concern about what will happen when interest rates finally rise.  Mike Dolan explains that the main problem is that the dollar denominates that debt pile. To read the full article in Reuters, click: Why Being the K ...

Using Crowdsourcing to Perfect a Business Idea Some startup businesses are using crowdsourcing services to gather input from a large number of people and test their ideas and business strategies.  This can be a wise strategy, as the best ideas may come from outsiders, said Elizabeth Gerber of Northwestern University. To read the full article in The New York Times, click: Crowdsourcing to Get Ideas, and Perh ...

While observers appear to be increasingly worried about the proliferating use of non-GAAP measures, a useful debate on non-GAAP measures would probably focus on the nature of their presentation within various disclosures rather than whether or not they should be outlawed altogether.  Sujan Rajbhandary, vice president, senior member of Mercer Capital’s Financial Reporting Valuation Group, explains. To read t ...

Why Clients Need to Discuss End-of-Life Care Baby boomers are at the forefront of the conversation around end-of-life planning, which should include discussing end-of-life treatments with family members and physicians, and designating health care proxies.  Elizabeth O’Brien, retirement reporter, also suggests reviewing elder planning tools and resources, which includes a free consumer End of Life Guide. To ...

Rate Hike Pause is Good News for Leveraged Closed-End Funds The Federal Reserve held steady on interest rates last week, not long after Fed chief Janet Yellen indicated officials would "proceed cautiously."  This could benefit leveraged closed-end funds.  These funds tend to be more volatile than other financial products, Binyamin Appelbaum explains, but they may be a smart investment for people with a long ...

How to Prepare for the Lease Accounting Standard The new lease accounting standard could have a significant impact on companies' balance sheets after it takes effect.  Chris Hatten, CPA, and Nicole Riley, CPA, with PKF Texas discuss five things companies can do to prepare. To read the full article in the Houston Business Journal, click: 5 Things to Consider Under the New Lease Accounting Standards. ...

Advising Your Business-Owner Clients on Transitions As baby boomer entrepreneurs move toward retirement, their advisers should ask a series of questions about their financial and emotional states to help them plan their exit strategies.  Patricia M. Annino, JD, suggests, among other things, advisers should ask about how quickly clients want to sell, how the sale will affect their families, and whether they ...

Federal Agencies Face New Disclosure Requirements for Public-Private Partnerships Federal agencies will be required to present disclosures about public-private partnerships in their general-purpose financial statements under guidance issued by the Federal Accounting Standards Advisory Board.  Ken Tysiac, JofA editorial director, discusses the standard. To read the full article in the Journal of Accountancy, ...

The debate over the use of non-GAAP performance measures continues.  Even as the prevalence of these items grows in the financial reports of public companies, cautionary tales of the uses and abuses of such metrics garner headlines.  Lucas M. Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, explains. To read the full article in Mercer Capital's Financial Reporting Blog, click: ...

Economic growth in the U.S. registered a frail 0.5% in the first quarter; the worst showing since Q1 of 2014.  A strong dollar and a drive by businesses to draw down inventories contributed, as did slow investment due to low oil prices.  However, Lucia Mutikani discusses that analysts are optimistic the pace will pick up as some stifling factors fade in coming quarters. To read the full article in Reuters, ...

Companies Plan Cost Reductions Over Economic Concerns Spurred by concerns over the global economy, 88% of respondents to a survey of senior executives at Fortune 1000 companies say they are planning to look for ways to cut costs in the next two years.  Matthew Heller explains. To read the full article in CFO.com, click: 88% of Firms Planning Cost Cuts in Next Two Years. ...

Three Apps That Can Make Traveling Easier Apps for last-minute hotel booking, finding your way through traffic, and booking flights can make your travel experience more enjoyable.  Greg LaFollette, strategic adviser with CPA.com, provides some tips to breeze through your next trip. To read the full article in the Journal of Accountancy, click: Expanding Your App-titude. ...