By Jeff Compton and Allen Wendler December 6, 2018 Not every party from which financial discovery is sought will have financial statements, but almost all will have a federal income tax return. Here, we address how to use tax returns for financial discovery. Remember, individual return forms and their instructions can be found at irs.gov. […]
By Jeff Compton and Virginia Christie April 30, 2018 Tracing funds through bank accounts is a complicated exercise, requiring a funds flow assumption. Typically, those commingling their own funds with those not belonging to them are considered to have spent their own funds first, and only then to have begun spending the funds not belonging to […]
The foregoing elements of potential damage reflect general approaches which will be tailored to specific facts.
While financial statements comprise balance sheets along with statements of income, cash flow and retained earnings, the balance sheet and the income statement are the most frequently available. Discovering what the balance sheet and income statement intend to present leads to more accurate discovery.
Two sets of financial statements for a company that cover the same time period can both be technically correct yet display dramatically different values. The key to effective financial discovery means knowing what to request.
Mergers and acquisitions in Texas reflect the state’s business success. With energy companies leading the way, almost $60 billion of deals were announced during the first half of 2013, with a slightly larger amount during the same period of 2012, according to Mergermarket.
This is a common exercise to determine amounts due. As a rule, the rate used should match the characteristics of the cash flows to be discounted. In practice, cash flows may comprise more than one type of debt or a hybrid of debt and equity or equity only. We were presented with an assignment to […]
Anything liquid (able to be turned readily into cash) has to be marketable, but the reverse is not necessarily true. For example, a 100 percent controlling interest in a private company is generally marketable, but not liquid. Likewise, real estate is marketable yet illiquid because it takes time to turn a parcel of real estate into […]