By Jeff Compton and Michael Shapiro June 29, 2018 For professional practices and owner managed firms, an understanding of personal goodwill is vital to understanding the fair market value of the business. Specifically, with multiple owners, the existence of personal goodwill can cause the fair market value allocable to a given owner to be materially […]
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 […]
By Jeff Compton April 12, 2018 Do some digging, and you’ll find there isn’t much accounting guidance for the presentation of intercompany accounts. To help remedy this, we performed our own survey of public company reporting. Intercompany transactions between related parties are fairly common in the normal course of business. Examples of these include i) services […]
When an intangible asset, usually a business ownership interest such as stock, is valued, the report will necessarily reflect the professional judgment of the appraiser. Evaluating the report will be facilitated by the application of rules or principles that are supplied by relevant professional standards.
As the size and complexity of a firm grows, the ability to identify what money (i.e. cash) came and went during a period becomes more daunting.
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.