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Showing 65–80 of 332 results

  • Screening for signs of fraud – Beneish model helps detect earnings manipulation

    January / February 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 439

    Abstract: Financial statement fraud can be costly. So, early detection is important to mitigate losses. This article describes a screening tool known as the Beneish model that can help clients quickly assess the likelihood of earnings manipulation. It uses eight financial metrics to determine the probability that revenue has been overstated and expenses have been understated.

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  • Tax Cuts and Jobs Act – Factoring tax reform into the valuation equation

    January / February 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 607

    Abstract: The Tax Cuts and Jobs Act (TCJA) — enacted in late 2017 — will fundamentally alter the tax rules for businesses. This article explains some of the favorable and unfavorable provisions that valuation professionals must evaluate when they estimate the value of business interests.

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  • Does your case call for a calculation or full-blown valuation?

    January / February 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 659

    Abstract: The distinction between value calculations and value conclusions has received significant attention in the business valuation community over the last year. Calculations can be a less expensive alternative, but they’re not right for every case. This article compares these two levels of service provided by valuation experts, explains when each service level may be appropriate and highlights a recent case in which a calculation of value was admitted into evidence. Robert Joseph Rohling v. Lylie Alexandra Rohling, Court of Civil Appeals of Alabama, No. 2160859 and 2160860, June 1, 2018

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  • Settlement proceeds: To tax or not to tax?

    January / February 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 871

    Abstract: When negotiating a settlement in employment law cases, employees sometimes overlook how the language of the settlement agreement can have significant tax consequences, depending on what’s included in the description of the claims being settled. This article summarizes a recent U.S. Tax Court ruling in favor of the IRS, which found that the taxpayer’s discrimination and work environment settlement proceeds were indeed taxable. A sidebar summarizes the tax treatment for various types of damages awards. Zinger v. Commissioner, T.C. No. 2018-33, July 2, 2018

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  • For richer, for poorer – Factoring valuation into premarital agreements

    November / December 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 445

    Abstract: Roughly half of U.S. marriages end in divorce. So, many people enter into premarital agreements before they tie the knot. This article describes why it can be risky for couples to cut corners on hiring a valuation expert to help draft the agreement, especially if one of the parties owns a business.

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  • Valuation matters when a company is liquidating

    November / December 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 628

    Abstract: Even in a bull market, some businesses struggle to make ends meet. This article highlights how outside financial experts can help struggling owners make informed decisions about their company’s future and maximize liquidation proceeds. It also explains how experts can help potential buyers of financially distressed businesses determine the appropriate asking price and conduct acquisition due diligence.

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  • Data analytics roundup

    November / December 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 565

    Abstract: When it comes to fraud detection, the amount of available data in the company’s paper and electronic records can seem staggering. This article explains how modern forensic accounting experts use analytical tools — such as association, outlier and cluster analyses — to unearth fraud in today’s data-driven world.

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  • What’s the fairest method of apportionment? Court rules on damages from breached lawnmower improvement

    November / December 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 879

    Abstract: When patents covering multicomponent inventions are infringed, a key question is: How should damages be “apportioned” to adequately compensate the patentee for only losses due to infringement of a product improvement? This article summarizes a recent case where the U.S. Court of Appeals for the Federal Circuit specifically addressed whether apportionment should be based on the royalty base or the royalty rate. A sidebar explains how the Federal Rules of Evidence (FRE) have recently been updated to streamline the admissibility of digital evidence. Exmark Manufacturing Company Inc. v. Briggs & Stratton Power Products Group, LLC, No. 2016-2197, 879 F.3d 1332, January 12, 2018

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  • What’s normal? Normalization adjustments are essential in valuation

    September / October 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 427

    Abstract: Fine-tuning financial statements helps a business valuation expert compare the subject company’s performance to the financial performance of similar public or private companies. This article explains normalization adjustments for 1) unusual and nonrecurring items, 2) nonoperating assets, 3) related-party transactions, and 4) accounting norms. Regardless of how an adjustment may be classified, however, professional judgment is essential to ensure meaningful comparisons.

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  • Updated survey provides insight into fraud trends and prevention methods

    September / October 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 584

    Abstract: The Association of Certified Fraud Examiners (ACFE) has released its Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse. Consistent with previous studies, the ACFE estimates that occupational fraud costs the typical organization 5% of its revenue every year. This article discusses the report’s findings, including median fraud losses, popular fraud schemes and the most common methods of detection.

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  • How causal assumptions can lead to damages dilemmas

    September / October 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 531

    Abstract: Whether due to time, cost or other constraints, attorneys sometimes ask damages experts to simply assume causation. This article discusses a recent Texas Supreme Court case where that assumption backfired, substantially reducing the amount of damages awarded to the plaintiff. Horizon Health Corp. v. Acadia Healthcare Co., Inc., No. 15-0819, 520 S.W.3d 848, Supreme Court of Texas, May 26, 2017

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  • Delaware high court endorses deal price for fair value in appraisal actions

    September / October 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 896

    Abstract: In a landmark decision, the Delaware Supreme Court has made clear its preference for valuations based on the deal price in appraisal proceedings. This article summarizes the case, which concludes that “the collective judgment of many” is generally considered superior to other valuation models imposed by a single analyst. A sidebar highlights a subsequent statutory appraisal case that was remanded to the Chancery Court on similar grounds. DFC Global Corp. v. Muirfield Value Partners, L.P., No. 518, 2016, 172 A.3d 346, Supreme Court of Delaware, August 1, 2017 Dell, Inc. v. Magnetar Global Event Driven Master Fund Ltd., No. 565, 2016, 177 A.3d 1, Supreme Court of Delaware, December 14, 2017

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  • Swiderski Equipment v. Swiderski – Courts demand clear valuation reports

    July / August 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 445

    Abstract: Vague business valuation reports can be confusing and prolong commercial litigation. This article summarizes a recent Wisconsin Court of Appeals case where the court excluded an expert’s business valuation report for being ambiguous on several key points. Swiderski Equipment, Inc. and Alex K. Swiderski v. James Swiderski, 374 Wis.2d 438, No. 2016AP700, Wis. App., February 14, 2017

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  • Dissecting the role of the forensic accountant

    July / August 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 621

    Abstract: When people hear the term “forensic science,” they usually think “CSI.” When they hear the term “forensic accounting,” they often don’t know what to think. This article explains how forensic accounting experts can help attorneys investigate, develop and prove their cases.

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  • Economic damages: Total business loss evidence allowed in recent case

    July / August 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 545

    Abstract: The Eighth Circuit Court of Appeals recently issued a surprising decision: It allowed a qualified damages expert to present a conclusion for the loss of a company’s entire value in a case where the plaintiff continued to operate after the defendants’ alleged wrongdoing. This article summarizes this case. West Plains L.L.P., dba CT Freight Co. v. Retzlaff Grain Co. Inc., dba RFG Logistics, et al, 870 F.3d 774, No. 16-2650, 8th Cir., August 30, 2017

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  • How much owners’ compensation is “reasonable”?

    July / August 2018
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 912

    Abstract: The IRS may challenge the reasonableness of compensation a business pays to its owners and other related parties under a variety of situations. This article explains the factors to consider when evaluating compensation paid by C corporations and pass-through entities, including S corporations, partnerships and limited liability companies (LLCs) treated as partnerships for tax purposes. A sidebar highlights IRS internal guidance that provides valuable insight on how IRS examiners are trained to assess what’s reasonable.

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