Organizations worldwide lose an estimated 5 percent of their annual revenues to fraud, according to the 2017 ACFE Report to the Nations on Occupational Fraud and Abuse. Fraud takes many shapes and forms, among them corporate fraud, consumer fraud, tax fraud, identity theft and many others.
Author Archives: JVFS
United States Treasury Withdraws Proposed Changes to IRC Regulation 2704
Business valuation professionals and estate planning attorneys can take a sigh of relief as United States Treasury Secretary, Steven T. Mnuchin, on October 2, 2017 proposed that the changes to Internal revenue Code Section(IRC) 2704 be withdrawn. The changes to this IRC regulation could have effectively eliminated discounts for lack of control and discounts forContinue reading “United States Treasury Withdraws Proposed Changes to IRC Regulation 2704”
New Tennessee Law on Discount for Lack of Marketability in Tennessee Divorce Valuation
The use of a marketability discount in Tennessee divorce valuations has been a source of some confusion based on court rulings. A recent amendment to the Tennessee Code will provide clarity to business valuators who prepare divorce valuations in Tennessee.
The Importance of Ratio Analysis in Business Valuation
One of the most important procedures done in preparing a business valuation is the ratio analysis of the subject company’s financial statements. The calculation and review of financial ratios will assist the valuation analyst in determining the strengths and weaknesses of the company.
The Importance of Selecting the Right Forensic Accountant
One of the most important decisions an attorney involved in a complex litigation will have to make is the selection of a forensic accountant as a consultant or as an expert witness. The specialized training and expertise of a forensic accountant can make a significant impact in the successful outcome of a case.
The Importance of Industry Research in Valuing a Business
Many times the industry outlook section of a business valuation report is not given the appropriate attention it deserves. Conducting a detailed industry analysis will provide the valuation analyst with the required knowledge needed to determine an appropriate conclusion of value.
ACFE 2016 Global Fraud Study – Fraud In Small Business
Anti-fraud professionals, business managers, government and regulatory agencies, and the media each have a vested interest in assessing the total amount of money lost to fraud each year. While many studies have attempted to determine the extent of fraud’s financial impact, the challenges in arriving at the true total cost of fraud are numerous.
Common Characteristics of Employee Perpetrated Fraud
When employees hear that one of their co-workers has been arrested for committing workplace fraud, many times they are surprised that someone they know would commit such an act. However , it has become our experience that there are common characteristics of employees who perpetrate workplace fraud. The four common red flags we see whenContinue reading “Common Characteristics of Employee Perpetrated Fraud”
New IRS Proposed Regulations Could Eliminate Valuation Discounts in Closely Held Family Entities
On August 2, 2016, The IRS released proposed regulations under Internal Revenue CodeChapter 14 that would eliminate the application of discounts for minority interest and marketability for transfers between family members in closely held entities for gift, estate, and generation skipping transfer tax purposes ( IRC Sections 2701-2704).
Does the Purpose of the Valuation Impact the Valuation?
The purpose of a valuation will ultimately dictate, the standard of value to be used, the audience the valuation will be used by, the type of report or means of communicating the result, as well as in some cases
Janicek Valuation & Forensic Services, PLLC 