"Refinancing" businesses and investments with bankruptcy
Article Abstract:
A properly planned bankruptcy is a highly effective means by which a tax-burdened company can finance itself. This is different from unplanned bankruptcy, which can exacerbate the difficulties facing a company and its officials. Tax planning for bankruptcy requires three levels of planning. The first is focused on the type, amount and timing of tax liabilities, and involves planning for litigation of liabilities. The second centers on alternative entities for recognition of income. The final level requires planning to reduce the liability of the debtor for unpaid debts after the bankruptcy. Those who choose the bankruptcy route to financing should realize that the type of bankruptcy influences the taxation of a transaction. The five different types of bankruptcies are Chapter 7, Chapter 9, Chapter 11, Chapter 12 and Chapter 13.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1997
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What is EVA, and how can it help your company?
Article Abstract:
Economic value added (EVA) and market value added (MVA) are not merely performance metrics for ranking companies and can actually be quite useful in the management of companies. By focusing on EVA, management can concentrate on increasing investor wealth and eliminate distortions resulting from historical cost accounting data. Coupled with MVA, it can help establish a target for internally and externally directed decisions made by management. EVA is measured by simply subtracting capital charge from the after-tax net operating profit. Meanwhile, MVA is computed by first multiplying shares outstanding by the stock price, the product of which is added to the market value of preferred stock and market value of debt. Total capital is then subtracted from the sum of the aforementioned addends.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1997
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Pay per project
Article Abstract:
More and more companies are hiring senior-level financial consultants to provide managerial support on a project-by-project basis. Firms that are experiencing organizational changes due to downsizing, rightsizing, acquisition or growth find it useful to contract senior financial professionals to manage daily operations and special projects. The role of senior financial consultants is expanding and becoming more significant to an organization's bottom line. Typical projects that necessitate the services of senior financial consultants include business process reengineering, mergers and acquisitions, financial systems conversions and upgrades, initial public offerings, regulatory reporting, mentoring and international business expansion.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1998
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