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Pepperdine University’s recently released Private Capital Markets Project (“PCMP”) reveals some interesting statistics derived from their survey of the current marketplace for privately-held business sales. One of the key topics is how a failure to come to terms on valuation conclusions often prevents deals from closing. For instance, investment bankers surveyed report that a valuation …
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Permanent link to this article: https://betweenthenumbers.net/2014/03/crossing-the-valuation-gap-on-private-equity-transactions/
The Securities Exchange Commission (“the Commission”) has filed an amicus brief clarifying that whistleblowing employees should be protected under the Dodd-Frank Wall Street Reform and Consumer Protection Act even if their whistleblowing report was only internal. In its brief, the Commission stated that it “interpreted the anti-retaliation protections to extend to any individual ho engages …
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Permanent link to this article: https://betweenthenumbers.net/2014/03/sec-defends-internal-company-whistleblowers/
The IRS has released its Annual Business Report for 2013, detailing its investigative priorities and accomplishments during the year. In terms of priorities, the focus has been on the following areas: Identity Theft Fraud Return Preparer Fraud & Questionable Refund Fraud International Tax Fraud Fraud Referral Program Political/Public Corruption Organized Crime Drug Enforcement Task Force …
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Permanent link to this article: https://betweenthenumbers.net/2014/02/irs-reports-its-investigative-wins/
A recent case in the Canadian courts took the unusual step of extending liability to the employees working for the entity who underreported licensing royalties. Plaintiff XY and Defendant JingJing entered into a licensing agreement for use of technology. The Court found that JingJing breached the terms of the contract and falsified its records in …
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Permanent link to this article: https://betweenthenumbers.net/2014/02/liability-extended-to-employees-for-underreported-license-fees/
The IRS is taking serious issue with Michael Jackson’s estate over the value of various assets upon which taxes are due. According to a recent article in the Los Angeles Times (“LAT”), there is over a billion dollar discrepancy between the value reported by his estate after his 2009 death and the amount concluded by …
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Permanent link to this article: https://betweenthenumbers.net/2014/02/how-much-is-michael-worth/
The Auditing Standards Board (“ASB”) has issued its Statement on Auditing Standards (SAS) No. 128, “Using the Work of Internal Auditors”. SAS 128 defines the external auditor’s responsibilities in situations where they are (a) using the work of the internal audit function to obtain audit evidence or (b) using internal auditors to provide direct assistance …
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Permanent link to this article: https://betweenthenumbers.net/2014/02/auditing-standards-board-provides-guidance-for-reliance-on-internal-auditors/
When a financial restatement is necessary, it is not surprising that investors will take some time to regain trust and give full credit to future earnings announcements. A recent study, developed through a collaboration of professors from Singapore Management University and Boston College, suggests that the three quarter rebuilding period described in prior research may be …
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Permanent link to this article: https://betweenthenumbers.net/2014/02/recovering-investor-confidence-after-a-restatement/
The IRS has determined that for sales-based royalties for tax years ending on or after January 13, 2014, taxpayers can either allocate sales-based royalties entirely to property sold and include those costs in cost of goods sold or allocate sales-based rolaties betwen cost of goods sold and ending inventory using a facts and cirucmstances cost …
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Permanent link to this article: https://betweenthenumbers.net/2014/02/irs-rules-on-sales-based-royalties-treatment/
King is the game developer responsible for the hugely popular online game “Candy Crush Saga”. Recently it was awarded trademark protection on the word “candy”. According to a recent article in the LA Times, competitors are complaining that such a common word was granted protection as some have begun to get cease and desist notices. …
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Permanent link to this article: https://betweenthenumbers.net/2014/01/protecting-their-candy/
When it comes to damage calculations, the term “speculative” is effectively a death sentence. In order to provide evidentiary value, a damage calculation must be to a reasonable degree of certainty. In Carter v. Clements Walker PLLC, et al. (“CW”), the Court found that despite an expert opinion that Carter suffered $33 million in damages, …
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Permanent link to this article: https://betweenthenumbers.net/2014/01/speculative-damages-lead-to-summary-judgment/
