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

Preference Analysis – The Pillowtex Decision

On April 14, 2010, Judge Kevin J. Carey, Chief Judge of the United States Bankruptcy Court for the District of Delaware, issued a decision in the Pillowtex bankruptcy case that has significant implications with respect to the ordinary course of business (“OCB”) defense. Pillowtex filed for bankruptcy prior to the 2005 expansion of the preference …

Keep Reading

Ponzi schemes: an overview

Often, when people find out I am a forensic accountant, they will ask me about widely publicized cases involving fraudsters, such as Bernie Madoff, who is currently serving a 150 year sentence in prison for orchestrating a multi-billion dollar Ponzi scheme. During 2010, the SEC filed forty-seven enforcement actions involving Ponzi schemes. Sometimes I am …

Keep Reading

Discounts in Marital Dissolution Business Valuations – To Discount or Not

After 15 years of marriage, Art and Wanda were getting divorced.  Among all the assets that had to be distributed was the family business, a heating, ventilation and air conditioning repair company.  Husband was the operator of the business.  Wife took care of the kids and managed the household.  Now Husband was faced with having …

Keep Reading

Discount for Lack of Marketability Job Aid for IRS Valuation Professionals

WHAT NEW DOCUMENT ARE IRS REVIEWERS USING TO ASSESS DISCOUNTS FOR LACK OF MARKETABILITY? A Two Hour Webinar on Tuesday, August 23rd Will Answer This Intriguing Question The “Discount for Lack of Marketability Job Aid for IRS Valuation Professionals,” (“IRS DLOM Job Aid”) has recently come to our attention, and we are excited to be …

Keep Reading

Is Your Company Vulnerable to Fraud – Part II: Fraud Indicator Checklist

HOW TO USE THE CHECKLIST 1. Review the concept for each internal control area and answer the questions following each section. 2. Each answer identifies an area that needs stronger internal controls. I. SEGREGATION OF DUTIES Concepts: • Certain accounting/bookkeeping functions are designed to cross-reference each other for accuracy.  If the same person is responsible for multiple duties, the …

Keep Reading