Companies on the brink of collapse must now use the liquidation basis of accounting, according to new guidance from the Financial Accounting Standards Board. Financial statements will now have to be prepared that show the values of assets and liabilities in terms of expected cash proceeds from liquidation. Plus, any assets not previously recognized under  Continue Reading »

Russell v. Russell, 2013 Ark. App. LEXIS 151 (Feb. 27, 2013) The husband challenged the trial court’s valuation of a family business, claiming there was no credible evidence to show it had a “fair market value” independent of the company’s founder—his stepfather. At divorce, the husband and wife agreed on the division of all property  Continue Reading »

Valuation experts will never look at income statements and balance sheets the same way again under proposed changes designed to unite lease accounting around the world. Almost all companies will be affected by the changes introduced by the agreement between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to create  Continue Reading »

In a post-trial bid to upset the outcome in Liberty Media Corp. v. Vivendi Universal, S.A., 2013 U.S. Dist. LEXIS 19485 (Feb. 12, 2013), Vivendi argued that no jury “should have been permitted to base a verdict” on the unreliable loss causation and damages testimony Liberty’s expert gave. In particular, Vivendi took aim at the  Continue Reading »

The 5th Circuit Court of Appeals considered how to measure damages for a facility with no real market when it reviewed the district court’s $3.8 million award to the plaintiff related to a destroyed waste treatment plant. The defendants owned and operated a Texas oil refinery that contained a third party’s waste treatment plant. After  Continue Reading »