Economic Concerns Take a Toll on Bank Stocks Investors are selling off bank stocks amid fears that the global economy is slowing and interest rates may stay low for the foreseeable future. Mike Cherney, Justin Baer, and Aaron Kuriloff, the WSJ, examine that bank leaders, meanwhile, say the sell-off has been overdone and don’t anticipate that the U.S. will enter a recession. To read the full article in The Wall Street Journal, click: Global Growth Fears Hit Bank Stocks.
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How to Safely Harness the Power of Social Media to Promote Your Firm Social media can be the best way to spread the word about your firm’s offerings. However, you may want to develop a policy to establish parameters to meet challenges and satisfy compliance requirements, all while spreading the word about what you can do for your clients. Blane Warrene, guest blogger from MobileGuard, explains what you need to do. To read the full article in AICPA Insights, click: 4 Steps to Creating a Social Media Policy for Your Firm.
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Companies with Women in Leadership Roles Have Higher Profits Almost one-third of businesses studied by the Peterson Institute for International Economics had no women in the C-suite or on their corporate boards. Jeanne Sahadi, CNN Money, discusses however, the study, which was funded by EY, also found that companies where at least 30% of executive positions were held by women tended to have higher profits. To read the full article in CNN Money, click: Stunning Lack of Women in Corporate Leadership Roles Worldwide.
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2015 was a strong year for FinTech. But, there are complexities in valuing venture-backed technology companies and the ability for market/investor sentiment to shift quickly. So, as Jay D. Wilson, Jr., vice president and senior member of Mercer Capital’s Depository Institutions practice, explains, it is important to have a valuation professional that can assess the value of the company as well as the market trends prevalent in the industry. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Preferences and FinTech Valuations. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. …
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Why Giving Employees Numerical Ratings can be Harmful Giving employees numerical ratings can cause negative emotions and can cause highly rated employees to become complacent, writes Ann Latham, founder of the consulting company Uncommon Clarity. These grades also tend to be subjective, with some managers practicing grade inflation and others refusing to give anyone the highest possible score. To read the full article in Forbes, click: Why Your Employee Performance Ratings Are Hurting Your Organization.
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Most Companies’ Guidance for Q1 Has Been Negative The first quarter of 2016 could be a rough one based on the earnings guidance that companies have released so far. Of the 72 S&P 500 companies that have provided guidance, 81% have offered negative guidance. Ciara Linnane, MarketWatch editor, discusses the issue. To read the full article in MarketWatch, click: Expectations for Current Quarter’s Earnings are Rapidly Deteriorating.
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Articulate Your Value to Business Clients Seeking Startup Financing Share this brochure and accompanying checklist, “Guide to Acquiring Startup Financing” with your clients as they explore options for securing capital, and help them understand how a CPA can assist. These tools plus a PowerPoint presentation, part of the CPA Marketing Toolkit for Small Business, outline the required steps small businesses must take to obtain additional funding. To read the full article at AICPA, click: CPA Marketing Toolkit for Small Business.
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Crowdfunding: SEC Issues an Investor Bulletin The SEC published an investor bulletin recently discussing a number of rules and features related to crowdfunding. Sujan Rajbhandary, vice president and senior member of Mercer Capital’s Financial Reporting Valuation Group, explains the developments, risks, and reasons of interest. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Crowdfunding: SEC Issues an Investor Bulletin. 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/.
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What lessons can business owners learn from the experiences of others? Perhaps there is a lesson to pay attention to basics in the emerging situation at Chipotle Mexican Grill, Inc. Z. Christopher Mercer, founder and CEO of Mercer Capital, examines their performance between 2012 and mid-October 2015; Chipotle’s performance since the initial E. coli announcement; and the traditional valuation relationships between expected growth and risk. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Chipotle: A Growth Story Ended (for Now at Least) by E. coli. This article is republished from Mercer Capital’s Financial Reporting Blog. It…
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What Happens When Companies Ignore Disruptive Innovation One mistake companies make is assuming that disruptive innovations will target the low end of the market. This may cause them to overlook potentially industry-changing ideas and stick with old infrastructure for too long. Maxwell Wessel, venture capitalist at Sapphire Ventures, explains the issue and what’s needed to overcome it. To read the full article in the Harvard Business Review, click: How Big Data is Changing Disruptive Innovation.
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Proposal Seeks Consistency in CPE Credit Increments The AICPA and the National Association of State Boards of Accountancy issued an amended proposal to create consistency in the increments of continuing professional education credits that CPAs can earn through various methods of instruction. Interested parties are encouraged to comment on the exposure draft by April 30. Ken Tysiac, JofA editorial director, explains the proposal. To read the full article in the Journal of Accountancy, click: Proposal Aims for Uniformity in CPE Credit Increments.
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The National Association of Certified Valuators and Analysts™ (NACVA®) celebrates 25 years of service to the accounting and consulting profession in 2016. NACVA’s Silver Anniversary conference, co-sponsored with the Consultants’ Training Institute™ (CTI™), is themed, Strong Foundations Build Bright Futures, and will be held June 8–11, 2016 at the iconic Hotel del Coronado in San Diego, CA. Steve Forbes, Chairman and Editor-in-Chief of Forbes Media and bestselling author, will deliver the conference keynote address, Navigating the Economy for Business Growth and Success, on the morning of Thursday, June 9, 2016. Forbes leads the most successful business news magazine in America. In both 1996…
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Last spring we observed that 2015 would likely mark a turning point in portfolio valuations. With Q4 earnings season beginning, we take an opportunity to check in on portfolio marks and market sentiment over the year. Travis W. Harms, Mercer Capital’s Financial Reporting Valuation Group lead, explains the key takeaway from the year. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Time Will Tell: Diverging Perspectives on BDC Portfolio Values. 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/
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A slump in U.S. corporate profit is the biggest concern expressed by financial professionals responding to a State Street Global Advisors survey. James Green, group editorial director Investment Advisor Group, examines if rising stock market volatility is close behind. To read the full article in ThinkAdvisor, click: Advisors Overweight Technology, Financials Amid Earnings Concerns: SSGA.
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Regulations Clarify Arm’s-Length Standard for Transfer-Pricing Rules The temporary regulations provide that the arm’s-length standard of Sec. 482 applies to all controlled transactions without regard to the form or character of the transactions, and they are particularly concerned with tax-favored transfers of assets outside the U.S. Jay L. Camillo, M.A. (international relations), Atlanta, and Kenneth P. Christman Jr., J.D., Washington, explain. To read the full article in The Tax Adviser, click: Temporary Regs. Under Sec. 482 Coordinate Transfer-Pricing Rules with Other Code.
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CEOs Wary of Regulation and Geopolitical Instability Over-regulation and geopolitical instability are contributing to a sharp decline in confidence in global economic performance, according to a report by PwC. Samantha White, senior editor for CGMA Magazine, looks into this issue. To read the full article in CGMA Magazine, click: Regulation and Geopolitical Instability Key Concerns for CEOs in 2016.
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Companies Look to Track Data About Employee Health Some companies are moving to track employee health data, which is linked to business performance. Aimee Picchi looks at how tracking and disclosing this type of data could make workers uneasy and perhaps lead to discrimination, critics say. To read the full article in CBS Moneywatch, click: The Growing Movement to Track Employee Health.
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The IRS announced that it is withdrawing proposed regulations released last September that would have allowed charities to file information returns with the IRS and donors instead of providing contemporaneous written acknowledgments of charitable donations (REG-138344-13). Charities that elected to use the new procedure would have been required to obtain donors’ Social Security or other tax identification numbers (TINs) to complete the information return. Sally Schreiber, Tax Adviser senior editor, explains. To read the full article in The Tax Adviser, click: Controversial Charitable Donation Rules Withdrawn.
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Should Pension Participants Take the Lump-Sum Option? Traditional pensions are increasingly offering participants a lump-sum payment in lieu of monthly payments over the rest of their lives. This option makes sense in some cases, but a monthly payment can reduce the chances of running out of money in retirement. Ann Carrns explains how, unfortunately, not all employees are able to make informed decisions. To read the full article in The New York Times, click: Carefully Considering Pension Payment Options.
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Last week, Lands’ End, Inc. announced it would write down the value of its flagship trade name asset. Management’s preliminary guidance could lower the asset’s value by 20%. Lucas M. Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, explores that obviously, a non-cash impairment charge is just that, non-cash, but what does it mean for stakeholders and how is such a charge actually determined? To read the full article in Mercer Capital’s Financial Reporting Blog, click: Lands’ End and Trade Name Impairment. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To…