FASB delays several sets of accounting standards
The FASB has voted to delay the effective dates for private companies and certain other entities for the standards on accounting for leases, credit losses (known as CECL), and hedging.
Global BV News: Two reports examine valuation impact of new IFRS 16 lease accounting
Equity values should remain unchanged, but enterprise values increase under IFRS 16 lease accounting rules, which went into effect Jan. 1, 2019, for many companies, according to two new reports from KPMG and Deloitte.
New FASB philosophy staggers effective dates
The Financial Accounting Standards Board (FASB) has outlined a new philosophy under which it plans to extend and simplify effective dates for private companies, smaller public companies, not-for-profit organizations, and employee benefit plans.
IPEV Board updates guidelines for private capital valuations
The International Private Equity and Venture Capital Valuation (IPEV) Board’s current update reflects valuation guidance from IFRS 13, ASC Topic 820 (US GAAP), and other inputs and is available here.
Medieval accounting book sells for $1.2 million
A “good accountant” is one of the three essentials of business, wrote Luca Pacioli in the 15th century in his book, Summa de Arithmetica, a first edition of which just sold at Christie’s in New York for $1,215,000.
BVU News and Trends April 2019
A monthly roundup of key developments of interest to business valuation experts.
New York Times’ scathing article on appraisers wins Polk Award
In our coverage of the New York Times article on the “friendly” valuations used to increase the fortune President Trump received from his father, we called it “brilliantly written and fascinating.”
Reminder: Comments due on new forensics standard
Comments are due February 28 on the proposed Statement on Standards for Forensic Services No. 1 (SSFS 1) developed by the AICPA’s Forensic and Valuation Services Executive Committee (FVSEC).
BVU News and Trends February 2019
A monthly roundup of key developments of interest to business valuation experts.
AICPA issues new forensics standard
There is often an overlap between valuation work and forensics, so a new standard for forensic services should be of interest to valuation experts.
BVU News and Trends December 2018
A monthly roundup of key developments of interest to business valuation experts.
Persaud v. Goad
Court affirms divorce valuations for mixed real estate and business assets; even if trial court erred in stating negative value for business that generated no income but carried high annual costs, the error was harmless where court reframed decision as one of fairness rather than finances.
Mix of Real Estate and Business Assets Poses Valuation Challenges for Courts
Court affirms divorce valuations for mixed real estate and business assets; even if trial court erred in stating negative value for business that generated no income but carried high annual costs, the error was harmless where court reframed decision as one of fairness rather than finances.
AICPA releases working draft on credit losses
The AICPA’s Financial Reporting Executive Committee has released for public comment a working draft on accounting issues associated with the implementation of FASB Accounting Standards Update No. 2016-13, “Financial Instruments—Credit Losses” (issued in June 2016), which “provides a new current expected credit loss (CECL) model to measure impairment for financial assets (and instruments) measured at amortized cost.”
BVU News and Trends November 2018
A monthly roundup of key developments of interest to business valuation experts.
New York Times serves up scathing look at appraisers in Trump exposé
“Friendly” valuations are the main characters in a brilliantly written and fascinating article in the New York Times about President Trump’s involvement in “dubious tax schemes” and “outright fraud” to increase the fortune he received from his father.
BVU News and Trends September 2018
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends August 2018
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends July 2018
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
‘Does new bonus depreciation apply to intangibles?’
That was a question from the audience at the ASA/USC 13th Annual Fair Value Conference held May 10 in Los Angeles.
Firms unprepared for new lease accounting
Only one in five finance, accounting, and other professionals say their companies are “extremely” or “very” prepared to comply with the Financial Accounting Standards Board’s (FASB) and International Accounting Standards Board’s (IASB) respective new lease accounting standards, according to a recent poll from the Deloitte Center for Controllership.
AICPA offers new certificates in forensics
Business valuation and forensics often go hand in hand, but some valuation experts are not qualified to get a certification, such as the AICPA’s Certified in Financial Forensics (CFF) credential.
Mississippi High Court Clarifies Best Practice for Lost Profits Calculation
In usurped-corporate-opportunity case, high court upholds trial court’s lost profits calculation based on actual numbers of company benefitting from wrongdoing, although best way is to project future profits or consider past profits of damaged business.
Finch v. Campbell
In partnership dispute, appeals court affirms trial court’s “equitable discretion” not to allow plaintiff to offer valuation of his law firm interest that contradicts valuation plaintiff offered for same asset in his divorce trial, benefitting each time.