Professional Accounting Blog

    Accounting For Your Prosperity

    Dissenting Shareholders: What’s the Fair Value of the Interest?

    Posted by Meaden & Moore on Jul 29, 2019 8:18:00 AM

    Topics: Investigative and Forensic Accounting

    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. 

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    Beneish Model Helps Detect Earnings Manipulation

    Posted by Meaden & Moore on Jul 24, 2019 8:34:00 AM

    Topics: Investigative and Forensic Accounting

    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.

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    Applying the Daubert Standard in Federal Cases

    Posted by Meaden & Moore on Jul 19, 2019 9:25:17 AM

    Topics: Investigative and Forensic Accounting

    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.”

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    Commercial Property Coinsurance: To Penalize or Not to Penalize

    Posted by Meaden & Moore on Jul 15, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    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.

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    Calculating Damages in Mergers and Acquisitions Transactions Disputes

    Posted by Meaden & Moore on Jul 1, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    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.

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    Forensic Accounting: How to Keep Your Attorney From Turning Red-Faced

    Posted by Rob Hernandez on Jun 5, 2019 9:25:00 AM

    Topics: Investigative and Forensic Accounting

    From the Desk of a Forensic Accountant

    "Simplicity is the ultimate sophistication.” – Leonardo da Vinci

    Since my 15 golf handicap will not allow me to play alongside Rory McIlroy on Sunday at The Masters, I have fallen in love with my life as a “simple” forensic accountant. Simplifying and effectively communicating results is one of the most rewarding aspects of a forensic accountant’s career. In a recent survey performed by the AICPA, over 100 attorneys overwhelming responded to the question, “What are the most frequent reasons why forensic accountants are ineffective?” as:

    1. Poor Oral Communication Skills

    2. Inability to Simplify Information

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    Clerk of Works & Forensic Examination of Construction Costs

    Posted by Meaden & Moore on May 16, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    In general, clerk of works, or conducting a forensic examination of construction costs, involves ensuring that the general contractor and its subcontractors have invoiced a stabilization, remediation, construction, and/or reconstruction project with relative reasonableness.

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    Are Settlements Taxable?

    Posted by Meaden & Moore on May 15, 2019 9:45:00 AM

    Topics: Investigative and Forensic Accounting

    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.

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    Builder’s Risk – Tax Credit Financing

    Posted by Patrick Kelleher, CPA, CFF on Apr 24, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    Federal tax credits are a crucial component for the development and preservation of affordable rental housing. Federal tax credit financing available to the construction industry was devised by Congress and state agencies as a way to encourage private investment in projects and businesses that provide a public benefit to underserved communities.  

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    Valuation Matters When a Company Is Liquidating

    Posted by Meaden & Moore on Apr 22, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    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.

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