The Financial Accounting Standards Board approved the issuance of Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. FAS 144 applies to recognized long-lived assets to be held and used or to be disposed of.
Category Archives: Business Valuations
What Is EBITDA and Why Is It Important in Financial Analysis?
EBITDA stands for Earnings before Interest, Taxes, Depreciation and Amortization. EBITDA earnings are used by many valuators and financial analysts as a method to compare the cash earnings of a subject company with cash earnings of comparable companies.
Are Business Valuations Needed for Gift and Estate Tax Purposes?
Yes! Business valuations are a must for estate and gift tax purposes. Estate valuation principles relating to business interests are in Regs. 20-2031-2 (f) and 20-2031-3. Gift tax valuation principles relating to gifts
How Can One Business Have More Than One Value?
Many business owners (and others) are surprised to discover that a business can have more than one value! Value is defined differently in different legal contexts. It is not uncommon for the value of a business under one definition of value to be considerably more than it is
Is There a Difference between Capitalization and Discounting of Benefits?
Capitalization and discounting of benefits are two methods of valuation related in that they are both parts on the income approach to valuation. However, one is more appropriate than the other under certain circumstances.
Should the Tax on Appreciated Property in the Corporation Be Considered in a Valuation?
Historically the IRS refused to allow any adjustment for “trapped-in taxes” on appreciated property in a closely held corporation. This position has changed based on recent court decisions.
Watch for “Double-Dipping” In Divorce Cases
Double-dipping is a phenomenon that happens in many divorce types of valuations. This typically happens when in the valuation, “normalizing adjustments” are made for salaries that have been drawn out of the company in order to reduce the profits for tax purposes.
What Are the Various Uses for Valuation?
Business valuations are critical for businesses of any size–and not just when a business is being bought or sold. Some common uses of valuations include:
Should Subsequent Events Be Considered in the Valuation?
Valuations are typically to be prepared based upon those facts that were known, knowable and foreseeable as of the date of valuation. However, there are numerous court cases that have considered subsequent or unforeseeable events.
How and Why to Get a Regular Business Valuation
Making it a point to get a regular, objective, and comprehensive valuation for your business is one of the most overlooked tasks of owning a business. Many business owners assume that they only need a valuation if they are planning on selling or retiring in the near future. But the reality is that the timeContinue reading “How and Why to Get a Regular Business Valuation”
Janicek Valuation & Forensic Services, PLLC 