November 2011 archive

Sampling Methods and Offsets now available in Customs Matters

On October 25, 2011, United States Customs and Border Protection (CBP) added regulatory provisions formally recognizing the use of sampling methods in CBP audits, and in importer disclosures. The final regulations do not materially change the proposed regulation issued around two years ago. Statistical sampling is a practical and expeditious way to accurately assess large …

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Permanent link to this article: https://betweenthenumbers.net/2011/11/sampling-methods-and-offsets-now-available-in-customs-matters/

IRS marketability Practice Aid falls far short of its potential

When a minority interest in a privately-held company is transferred, a discount from the value of the entire company is calculated to reflect the lack of marketability of such an interest.  These discounts for lack of marketability (DLOMs) are important in many estate plans and related transfers. In August, 2011, the IRS publicly released a lengthy practice …

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Permanent link to this article: https://betweenthenumbers.net/2011/11/irs-marketability-practice-aid-falls-far-short-of-its-potential/

Court-appointed expert will likely have the final word on damages in Oracle vs. Google

The District Court appointed an independent expert on the issue of damages pursuant to rarely-used Rule 706 of the Federal Rules of Evidence. The report will likely be made public soon. No doubt, the District Court is frustrated by the wide range of damage claims that the parties are offering, and is attempting to reign …

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Permanent link to this article: https://betweenthenumbers.net/2011/11/court-appointed-expert-will-likely-have-the-final-word-on-damages-in-oracle-vs-google/

The plot thickens – Theft at MF Global

MF Global customers had their accounts frozen after the October 31, 2011 bankruptcy filing. The freezing occurred because, shortly after the bankruptcy filing, MF Global reported that over $600 million of what should have been client-segregated funds were missing. Like the 2008 failures of Lehman Brothers, Bear Stearns, and Merrill Lynch, MF Global fell shockingly …

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Madoff victims still far from full recovery

Bernard Madoff’s Ponzi scheme was estimated to be $64.8 billion.  These are amounts that customers supposedly held at his investment firm as of November 30, 2008.  However, the $64.8 billion does not reflect actual customer losses.  That number is estimated to be $17.3 billion.  The trustee, Irving Picard, has already recovered $8.7 billion.  A majority …

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Permanent link to this article: https://betweenthenumbers.net/2011/11/madoff-victims-may-get-full-recovery/

Groupon: Valuation Pluses and Minuses.

The Groupon IPO finally occurred.  At least for the moment, the insiders are looking smart for rejecting Google’s six billion dollar offer for the local deals coupon site.  The initial day’s trading set the market capitalization of the firm at over twice that. So it is either going to be the next Amazon or the next …

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Permanent link to this article: https://betweenthenumbers.net/2011/11/groupon-valuation-pluses-and-minuses/