September 2013 archive

FASB to Alter Reporting for Development Stage Companies

FASB has agreed to work on decreasing financial reporting complexity for development stage companies. FASB defines such companies as those which devote substantially all efforts to establishing a new business and: Have not begun planned principal operations; or Have begun planned principal operations without producing significant revenue. Under existing Generally Accepted Accounting Principles (“GAAP”), development-stage entities must …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2013/09/fasb-to-alter-reporting-for-development-stage-companies/

Expert Thrown Out After Claiming Major Report “Typos” on Cross

A recently affirmed decision to grant judgment for the defendant as a matter of law in Rembrandt Vision Technologies, Inc. v. Johnson & Johnson Vision Care, Inc. highlights the importance of expert testimony that is consistent with previously disclosed opinions presented in a Rule 26 report. In this matter, the expert’s testimony was struck because …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2013/09/expert-thrown-out-after-claiming-major-report-typos-on-cross/

Do “Presidential Names” Become More Popular?

An event study captures the impact of a certain event(s) on a marketplace. This technique is most commonly used in the context of the stock market, when analysts study the effects of certain events on stock prices. Analysts look at share prices prior to the event of interest (e.g. a stock split, CEO resignation, etc.) …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2013/09/which-presidential-name-is-most-popular/

Cash is King For Home Purchases

RealtyTrac, a leading source for comprehensive housing data, recently released its July 2013 U.S. Residential & Foreclosure Sales Report.  One interesting piece of information contained in the report was the statistic for all-cash purchases: “All-cash purchases nationwide accounted for 40 percent of all sales of residential property in July, up from 35 percent of all …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2013/09/cash-is-king-for-home-purchases/

CA Association of Realtors Try to Sell More Homes by Suggesting that Correlation = Causation

The California Association of Realtors (“CAR”) unsurprisingly wants people like you and me to buy homes. One of CAR’s newest selling tactics is an infographic proclaiming that “Owning a Home Benefits Your Children.” CAR asserts that children living with home-owning parents are much more likely to perform well in school, complete a college degree, and …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2013/09/ca-association-of-realtors-try-to-sell-more-homes-by-suggesting-that-correlation-causation/

Questions of Fraud and Gender

Are women being unfairly prevented from engaging in corporate fraud?  That seems to the be conclusion espoused by sociologist Darrell J. Steffensmeier of Pennsylvania State University in his recent study published in the journal American Sociological Review: “Typically, women were not part of'[fraud] conspiracy groups. When women were involved, they had more minor roles and made less profit …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2013/09/questions-of-fraud-and-gender/

PCAOB Finds Fault with KPMG and PWC Audits

In 2012, the Public Company Accounting Oversight Board (“PCAOB”) conducted inspections of registered public accounting firms pursuant to the Sarbanes-Oxley Act of 2002  According to the PCAOB: “The inspection process is designed, and inspections are performed, to provide a basis for assessing the degree of compliance by a firm with applicable requirements related to auditing issuers. The …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2013/09/pcaob-finds-fault-with-kpmg-and-pwc-audits/