When is there a Duty to Corroborate Data? NACVA’s Standards Board (SDB) was formed in 2016 with the purpose to promulgate NACVA’s Standards, including the development of interpretations, amendments, restatements, and new releases of NACVA’s Standards as deemed necessary and prudent. While being able to influence the very rule governing one’s profession is an astute honor, the most rewarding role performed by the SDB is that of responding to questions that a member has asked or issues they are dealing with. This article addresses data reliability questions and issues, and how it relates to the NACVA standards. NACVA’s Standards Board…
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Hotel Business Value QuickRead’s Technical Editor, Roberto Castro, reviews BVR’s What It’s Worth: Hotel Business Value. There are few resources available for business valuation professionals that focus on the valuation of hotels. The “go to” reference books have been Stephen Rushmore, MAI and Erich Baum’s Hotels & Motels: Valuations and Market Studies, a 2001 Appraisal Institute publication, and David Harper’s Valuation of Hotels for Investors, a 2008 EG Books publication. BVR’s Special Report, What It’s Worth: Hotel Business Value, covers some of the ground included in these other publications but highlights opportunities available to business valuation practitioners and takes issue…
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Studies in the Closely Held Company Valuation (Part II of II) In the first part of this two-part discussion, the author identified six transaction risk factors attempting to sell a controlling (including 100 percent) interest in a closely held company. Those included: 1) an uncertain time horizon to complete the offering or sale; 2) “Make ready” accounting, legal, and other costs to prepare for and execute the offering or sale; 3) risk as to the eventual sale price; 4) uncertainty as to the form (e.g., stock or cash) of transaction sale proceeds; 5) inability to hypothecate the subject equity interest;…
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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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According to the Global State of Information Security Survey 2015 sponsored by PwC, the total number of reported cyber security breaches reported this year jumped 48 percent totaling 42.8 million new occurrences. That’s equivalent to 117,339 successful security attacks happenings per day. In addition, the compounded annual growth rate of detected security breaches has increased by 66 percent every year since 2009. Contributing to the problem is the fact that overall, allotted funds for security measures have been frozen at just 4 percent or less than the average IT budget for the last five years. Large corporations with revenue of…
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Solid revenue growth last year following strong performance in 2010 and 2011 after a severe revenue decline in 2009 Michael Cohn at Accounting Today reports this growth according to a newly published analysis. The report, from the social networking forum Big4.com, analyzed the 2012 financial performance of Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers. It found that after a strong 2011, fiscal year 2012 saw increases in revenue for all four firms, with revenues increasing between 1.4 percent and 7.8 percent from 2011, as firms leveraged the global economic recovery, improved equity markets, liquid credit conditions, stricter regulations, globalization and…
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Owners: Don’t Exit Before You’re Ready, Lock Yourself In, or Count on Future Consulting There is no single formula that will result in a happy retirement for business owners. Over 75 percent of business owners say they regretted selling their companies a year after the sale, according to a PwC study entitled “Whose Business is it Anyway?” But there are ways to improve the chances that consultants can help owners exit their business successfully and enjoy a rewarding retirement, writes Richard Jackim, attorney and co-founder of the Exit Planning Institute. Here are common exit planning mistakes consultants can help business…
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The International Accounting Standards Board plans to establish a formal network to give standard-setting bodies a voice when their countries switch to International Financial Reporting Standards. There is conflict, however, over how the network will operate and whether it would dilute IFRS as a single set of reporting standards. Advocates of such a network say the U.S. will not commit to IFRS without it. In an article called “Long Push for Accounting Standards” sub-titled “The United States is Seen to Be Dragging its Feet in Choosing to Come on Board,” Star Publications (Malaysia)/Reuters reports: SHAREHOLDERS and regulators have long wanted the…
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PwC Global Economic Crime Report: Cybercrime a Growing Threat A new PwC report calls cybercrime one of the top four economic crimes – just after asset misappropriation, accounting fraud, and bribery/corruption, according to recent reporting in AccountingWeb. What is cyber crime? The PwC report, which you can read here, defines it this way: For our survey questionnaire, we defined cybercrime as: ‘an economic crime committed using computers and the internet. It includes distributing viruses, illegally downloading files, phishing and pharming, and stealing personal information like bank account details. It’s only a cybercrime if a computer, or computers, and the internet…