In Athlon Sports Communications v. Duggan, the Tennessee Supreme Court addressed whether the Delaware Block method was mandated when valuing shares in appraisal rights actions. To determine the appropriate method for determining “fair value,” the state court looked outside of its jurisdiction to Weinberger v. UOP, Inc.Read More
Financial statement manipulation is the costliest type of occupational fraud. The 2018 Report to the Nations published by the Association of Certified Fraud Examiners found that the median loss from financial statement fraud was $800,000, compared to median losses of $114,000 for asset misappropriation and $250,000 for corruption.
With any type of fraud, the sooner it’s detected, the more likely losses can be mitigated. Here’s a tool to help clients quickly assess the likelihood of earnings manipulation.Read More
Ohio will keep the Business Income deduction (BID) at $250,000 and maintain the 3% flat rate cap in Budget bill
Topics: Tax Planning & Strategies
On July 16, the Ohio House and Senate conference committee on Am. Sub. HB 166 voted to keep the Business Income Deduction (BID) at $250,000 and to maintain the 3% flat rate cap on income above it. Legislators were convinced to avoid tying the BID exclusions to the federal 199A law regarding the Qualified Business Income Deduction.The provision was previously mentioned as an option that would have impacted a broad array of specified service trades and businesses (SSTB). The House, Senate and DeWine Administration in reaching a compromise eliminated the BID for lawyers and lobbyists – two professions which became the focal point of BID concerns by some legislators. Read More
With a median loss of $800,000, financial statement frauds are the costliest type of white-collar crime, according to the 2018 Report to the Nations by the Association of Certified Fraud Examiners (ACFE). Fortunately, auditors and forensic accountants may be able to detect financial misstatement by testing journal entries for errors and irregularities. Here’s what they look for and how these tests work.Read More
Under Rule 702 of the Federal Rules of Evidence, an expert witness may testify if scientific, technical, or other specialized knowledge will help a judge or jury make sense of evidence or understand facts. A 1993 U.S. Supreme Court case – Daubert v. Merrell Dow Pharmaceuticals Inc. – put this rule to the test, affirming judges’ roles to act as gatekeepers against “junk science.”Read More
The wording of a Coinsurance commercial property policy effectively asks a simple question: Is the Required Insurance value greater than the Limit of Liability? If the answer is “yes,” there is work to do to impose a Coinsurance penalty. If the answer is “no,” the loss will be paid without penalty, subject to deductibles, limits and so on.
Mergers and acquisitions (M&A) transactions rarely turn out precisely as the parties anticipated when they negotiated the deal and signed the documents. This can cause disputes over purchase price adjustments, representations, warranties, and earnout provisions. To determine the liability and computing damages that occur from these disputes, you need a combination of business valuation, forensic accounting, and economic analysis techniques.Read More
The federal tax code specifically excludes damages received for personal physical injuries or physical illness from taxable gross income. But sometimes it’s hard to determine the nature of settlement proceeds. This article summarizes a recent U.S. Tax Court decision that illustrates the importance of using the “right” wording in settlement agreements to minimize unfavorable tax consequences.Read More
Even in a bull market, some businesses struggle to make ends meet. Eventually, owners may decide to close the doors and liquidate a distressed company’s assets. Outside financial experts can help owners make informed decisions about the distressed company’s future and maximize liquidation proceeds. Experts can also help potential buyers of financially distressed businesses determine the appropriate asking price and conduct acquisition due diligence. Here are the details on these types of engagements.Read More