Arizona Law Changes Regarding Prejudgment Interest

When we perform calculations of economic damages for litigation purposes, there is often a component of past business loss or other type of historical economic loss.  Most experts will bring those historical losses to present value terms, using a prejudgment rate of return to make the injured party whole for past damages.  Although there are …

Keep Reading

Arizona Expert Witnesses to Be Tested – An Alert for CPAs Who Testify (Part 3)

If you provide testimony as an expert witness, you could soon be facing some new challenges from opposing attorneys regarding the opinions you will be rendering in the courtroom.  Effective January 1, 2012, Arizona joined several other states that have adopted the Federal Rules of Evidence relating to expert witnesses, i.e., the “Daubert”   standard. Rule …

Keep Reading

Arizona Expert Witness to Be Tested – An Alert for CPAs Who Testify (Part II)

If you provide testimony as an expert witness, you could soon be facing some new challenges from opposing attorneys regarding the opinions you will be rendering in the courtroom.  Effective January 1, 2012, Arizona joined several other states that have adopted the Federal Rules of Evidence relating to expert witnesses, i.e., the “Daubert”   standard. The …

Keep Reading

Arizona Expert Witness to Be Tested – An Alert for CPAs Who Testify (Part 1)

If you provide testimony as an expert witness, you could soon be facing some new challenges from opposing attorneys regarding the opinions you will be rendering in the courtroom.  Effective January 1, 2012, Arizona joined several other states that have adopted the Federal Rules of Evidence relating to expert witnesses, i.e., the “Daubert”   standard. Senate …

Keep Reading

Integrating Excel and Access – Responding to Clients’ Needs for Data Analysis

At Henry & Horne we often deal with requests that involve a heavy data analysis component.  Most of these requests can be handled with Microsoft Excel.  The multifaceted spreadsheets, in addition to the formulas and macros, allow for complete data articulation.  However, Excel does have its limitations.  In one recent project we had for a …

Keep Reading

Not-for-Profit Entities: Use of “Fair Value” for Financial Reporting

Typically the standard of value in the valuation of a fractional interest in an entity for estate and gift tax reporting purposes is “fair market value” which is defined by Revenue Ruling 59-60 as “the price, expressed in terms of cash equivalents, at which property would change hands between a hypothetical willing and able buyer …

Keep Reading

Deposition Composure

The court reporter had a foreboding sense that the deposition was not going to go well.  Mr. Kruft, who was pushing 80 years, was being deposed.  And, he was clearly expressing a great deal of annoyance at the questions being fired at him by the examining attorney.  He also did not like the smug demeanor …

Keep Reading

Incentive Based Compensation – Pay for Performance

Pay for performance can mean different things to different people.  Should the pay reflect past performance or should it reward for future performance?  Is the compensation meant to be for short-term purposes or long-term purposes?  This is a hotly contested issue and should be resolved based on the employee’s job function and the goals of …

Keep Reading

Deposition Mental Toughness

If you have never testified at a deposition involving a civil litigation matter but you soon will, it’s possible you will have some of the feelings I had the first time I had to testify.  Just before the hour of your testimony arrives, you may end up experiencing (pick one): a) stress; b) fear; c) …

Keep Reading

Income Statements in Real Estate Appraisals and Business Appraisals

When reading business and real estate appraisals, one should recognize that a business appraiser and real estate appraiser do not rely on the same items of income and expenses when determining market value.  For example, when valuing an LLC that owns a multi-tenant office building, the real estate appraisal only considers income and expenses directly …

Keep Reading