BVU News and Trends December 2019
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends November 2019
Business valuation news from a global perspective.
BVU News and Trends October 2019
A monthly roundup of key developments of interest to business valuation experts.
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.
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
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.
Daubert Flexible as to Solvency Determination for Multiple Debtor Entities
Court finds Daubert centers on reliability, not persuasiveness, and can accommodate experts’ different approaches to determining solvency in case with multiple debtor entities; court rejects exclusion of expert opinion relying on GAAP-based financials.
Daubert tests reliability of testimony, not power of persuasion
The plaintiff, representing the debtor enterprises, sued executives of related family-run consumer lending and retail businesses that had filed for Chapter 11 bankruptcy over allegedly fraudulent transfers.
Daubert Flexible as to Solvency Determination for Multiple Debtor Entities
Court finds Daubert centers on reliability, not persuasiveness, and can accommodate experts’ different approaches to determining solvency in case with multiple debtor entities; court rejects exclusion of expert opinion relying on GAAP-based financials.
Post-Confirmation Comm. for Small Loans, Inc. v. Martin
Court finds Daubert centers on reliability, not persuasiveness, and can accommodate experts’ different approaches to determining solvency in case with multiple debtor entities; court rejects exclusion of expert opinion relying on GAAP-based financials.
Court Rebuffs Attempt to Allocate Excess Value to Intangible Assets
Bankruptcy Court rejects proposition that sales price increase has to be attributed to one debtor’s business, as goodwill, because other debtor’s real property allegedly remains constant in value; court denies request to change allocation of proceeds.
In re Case No. 800 Bourbon St.
Bankruptcy Court rejects proposition that sales price increase has to be attributed to one debtor’s business, as goodwill, because other debtor’s real property allegedly remains constant in value; court denies request to change allocation of proceeds.
Valuing a Contingent Liability
"Valuing a Contingent Liability," King, Alfred M., M&A Today , April 1999, pp. 10-11. During an acquisition, when a buyer and seller disagree about the earnings outlook for the target company ...
Admissibility of the business appraiser's testimony: Disqualification can leave the client empty-handed
Michele Miles wears two hats: She is a commercial trial lawyer with Becker & Poliakoff, P.A., with whom she has been associated since 1984, and is also a director of the Institute of Business Appr ...
'Book Value' by 'General Accounting Principles' Does Not Necessarily Mean GAAP
Defendant, Oliver Trittler Jr., is the personal representative of an estate.
No 'Accountancy' Approach; Court Upholds Arbitration
Gregory J. Grambow, former president of Associated Dental Services Inc., (ADS Inc.), had 20% stock interest in ADS Inc.
Lake Cable and Buhrow v. Trittler
At issue is whether the term "book value" was erroneously interpreted, resulting in a calculation of a substantially insufficient value, in corporate stock restriction agreement.
Gregory J. Grambow v. Associated Dental Services
At issue is whether the determination of the value of Grambow's shares under a post-employment stock redemption plan is not subject to arbitration and, therefore, the arbitrators exceeded their authority when they determined the value of the shares.