Standards of Value Theory and Applications

by Fishman, Jay E.; Pratt, Shannon P.; Morrison, William J.

• ISBN13: 9781118138533
• ISBN10: 1118138538
• Edition: 2nd
• Format: Hardcover
• Copyright: 2013-04-22
• Publisher: Wiley

Summary

An indispensable reference tool for CPAs for avoiding common professional risks and hazards and achieving a successful and sustaining practice Bringing together the perspectives of CPAs, lawyers who defend and prosecute them and the underwriters and insurers who cover them, Professional Liability Risk Management shows CPAs how to avoid professional errors and omissions that can lead to malpractice. It identifies the most prominent malpractice risks confronting professionals through scenarios and provides practical techniques to minimize exposure to these risks. Reveals how to avoid professional errors that may lead to malpractice Looks at common malpractice risks Presents practical methods to reduce exposure to risks Both a cautionary lesson plan and a reference tool offering clear guidance through and around problematic situations likely to arise in any practice, Professional Liability Risk Management is organized largely according to the chronology of an engagement to better understand risk assessment and management as a method and a way of approaching the practice.

Author Biography

JAY E. FISHMAN, FASA, is coauthor or contributing author of seven professional books. He is a managing director of Financial Research Associates, a regional business valuation and forensic accounting firm. He has conducted hundreds of business valuations and has qualified as an expert witness and provided testimony in several federal and state courts.

SHANNON P. PRATT is one of the most successful and respected authors in the field of business valuations. He has written many industry standard texts. Over a distinguished career spanning more than four decades, he has performed valuation engagements for M&As, ESOPs, and numerous other purposes. Dr. Pratt is CEO of Shannon Pratt Valuations, a business valuation firm located in Portland, Oregon.

WILLIAM J. MORRISON, CPA, ABV, CFF, is a partner at WithumSmith+Brown, a regional mid-Atlantic CPA firm, and is frequently appointed by the courts as a valuation expert. He has published articles on forensic accounting and valuation. He is a former FBI agent and has conducted thousands of forensic accounting investigations and business valuations of closely held companies.

Table of Contents

Foreword

Preface

Acknowledgments

About the Authors

Introduction

Purpose

Chapter Preview

How Standard of Value Can Affect the Ultimate Conclusion of Value

Chapter 1 Common Standards and Premises of Value

Common Standards and Premises

Common Standards of Value

Common Operational Premises Underlying the Standard of Value

Other Issues

Summary

Chapter 2 Fair Market Value in Estate and Gift Tax

Introduction

Elements of Fair Market Value

Summary

Chapter 3 Fair Value in Shareholder Dissent and Oppression (Gilbert E. Matthews, Michelle Patterson and Jay E. Fishman)

Fair Value as the Standard of Value in Dissent and Oppression

The Appraisal Remedy for Dissenting Shareholders

The Oppression Remedy

Fair Value Is the Standard of Value in Appraisal and Oppression in Almost All States

Breaking Down the Components of Fair Value

Fair Value in Delaware

Ohio’s Unique and Unfavorable Standard of Value in Appraisals

Fair Value Usually Excludes Discounts and Premiums

Equitable Adjustments to Fair Value

Summary

Chapter 4 Standards of Value for Partnership and Limited Liability Company Buyouts

Introduction

Buyout upon Dissociation

Buyout in Lieu of Dissolution

Dissenters' Rights

Effect of Dissociation

Dissent

Dissolution

Distribution upon Partner's Withdrawal

Limited Partnership Cases Rejecting Discounts

Limited Liability Companies, Generally

Uniform Acts

Buyout in Lieu of Dissolution

Withdrawal and Buyout

Dissenters' Rights

Professional LLCs

LLC Decisions

Summary

Chapter 5 Standards of Value in Divorce

Introduction

Premises and Standards of Value in Divorce

Standards of Value in Divorce among the 50 States

Value in Exchange

Value to the Holder

Summary

Chapter 6 Fair Value in Financial Reporting

Introduction

Application of Fair Value

Application of the Fair Value Standard to Business Combinations

Application of the Fair Value Standard to Asset Impairment Tests

Interpretation of Fair Value Compared to Other Standards of Value

Audit Issues

Summary

Appendix: Sources of Information

Appendix A International Business Valuation Standards

Introduction

International Valuation Standards Council

Toronto Valuation Accord

Royal Institute of Chartered Surveyors

International Financial Reporting Standards

Appendix B Fair Value in Dissent and Oppression Chart

Appendix C Standard of Value Divorce Chart

Index