December 2013 archive

An example of a proper expert exclusion under Daubert

In an unpublished opinion in re: Craig Moore vs. International Paint, L.L.C., (No. 13-30281, November 15, 2013) the Fifth Circuit upheld the District Court’s exclusion of an expert witness and the related Summary Judgment Order. The case provides a worthwhile primer on when a Daubert motion should be successful. Too often, judges go beyond the …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/an-example-of-a-proper-expert-exclusion-under-daubert/

Use an independent service to help protect against California’s new $10,000 penalty for whistleblowers

Employees have protection as whistleblowers from a wide variety of federal and state laws. Effective January 1, 2014, California added SB 486 to this list of legal protections. The new California law broadens an employee’s right to pursue legal action if retaliated against for reporting suspected wrongdoing. Perhaps most importantly, the law creates a civil …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/use-an-independent-service-to-help-protect-against-californias-new-10000-penalty-for-whistleblowers/

IRS finalizes delayed start date to start accepting returns

In October the IRS announced that the government shutdown would delay the start of the 2014 tax filing season at least a week and likely more.  According to the IRS announcement: “The government closure came during the peak period for preparing IRS systems for the 2014 filing season. Programming, testing and deployment of more than …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/irs-finalizes-delayed-start-date-to-start-accepting-returns/

Update your buy-sell agreement as part of your end-of-year duties

Buy-sell agreements are an important business continuity tool that can assist a business in difficult transition times. Usually, the buy-sell agreement either contains a formula, or requires an annual determination of the price to be employed. All too frequently, the business owners do not revisit the formula to ensure that it remains sensible in light …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/update-your-buy-sell-agreement-as-part-of-your-end-of-year-duties/

No GAAP yet for Bit Coins

Bit Coins are increasingly in the news.  Denise Lugo of Bloomberg BNA describes “Bit Coins” as: a type of virtual currency, which loosely put, is created when a complex mathematical algorithm is solved using high power computers.  It seems like overnight bit coins have become legitimate.” Ms. Lugo also summarized the FASB’s recent position at a …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/no-gaap-yet-for-bit-coins/

Ernst & Young gets settlement deal of the decade

E&Y just settled the Lehman Brothers class action against them for $99 million. It made little news. The 2008 Lehman Brothers bankruptcy was at least partially caused by accounting malfeasance. This article describes the bankruptcy examiner’s report on this wrongdoing. Arthur Andersen was entirely destroyed for a bad audit of Enron that was no worse …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/ernst-young-gets-settlement-deal-of-the-decade/

Disgorgement of Profits on Unpaid Benefits Granted in ERISA Long Term Disability Case

In Rochow v. Life Insurance Company of North America (“LINA”), the Appeals Court affirmed a disgorgement remedy of $3.8 million under ERISA in this long term disability case.  In a previous appeal, the Court had determined that LINA had acted in an arbitrary and capricious manner when it continuously denied Daniel Rochow benefits for his long …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/disgorgement-and-unpaid-benefits-granted-in-erisa-long-term-disability-case/

New Guide to Review Engagements

On December 10, 2013 the International Federation of Accountants released its guide for conducting review engagements.  The guidelines are particularly relevant for smaller firms conducting review engagements in compliance with International Standard on Review Engagements (ISRE) 2400 (Revised). The guide includes such helpful information as: illustrative examples relevant extracts from the standard practical points for practitioners’ …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/new-guide-to-review-engagements/

Audit Committee Members and CEOs Too Close for Comfort?

A recent study reported in the American Accounting Association’s The Accounting Review suggests that in many cases the relationship between the the top executive and the respective audit committee members may be too comfortable to achieve truly independent oversight. The study found that approximately 40 percent of the 2000 companies analyzed have committee members who are socially …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/audit-committee-members-and-ceos-too-close-for-comfort/

California Franchise Tax Board Provides Tax Relief for Short Sales

The California Franchise Tax Board (“FTB”) issued a letter summarizing their position regarding the tax impact of short sales.  The FTB followed suit with the IRS’ position, meaning there will not be any California state tax impact for a majority of taxpayers in this position (See my previous blog post regarding the IRS’s position).  The FTB …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/california-franchise-tax-board-provides-tax-relief-for-short-sales/