What's it worth?
Article Abstract:
A case study involving an industrial chemical distributor is presented that deals with financial statement analysis, business valuation, negotiation and sale transaction structuring. This study aims to encourage accounting students to learn how to use ratio analysis to assess business performance, to compare different business valuation approaches, to examine negotiating strategies, and to negotiate and structure terms of a sale. Specifically, it requires students to assume the roles of the company's chief financial officer and controller and to prepare a financial report to be submitted to the board of directors. The report would have to include an analysis of corporate performance using ratio and industrial norms as a benchmark; a comparison of the asset-backed, market comparison, discounted cash flow and earnings capitalization valuation methods; a fair-market value for the company's stock; and a recommended negotiation strategy.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1996
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Financial loss and valuation
Article Abstract:
A case is presented which requires forensic accountants to determine the personal and professional value of an accountant killed in an automobile accident. This determination is necessary since the victim's family filed a suit against the driver of the truck that caused the accident as well as the driver's employer, seeking damages for the financial loss of the accountant's income and deprivation of her services as a wife and mother. The expert witness testimony will help the plaintiff's attorney to formulate a financial loss estimate. For forensic accountants, the factors that need to be considered include the victim's earnings, annual fringe benefits, earning years, income taxes, valuation and years of household contribution, personal consumption allowance, discount rate and real annual earnings growth. The process of developing model assumptions and valuation for this case is discussed.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1997
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So you want to be an expert witness
Article Abstract:
Accountants must be prepared before going to court and be sure to review their reports and figures beforehand. The accountant must be an expert accountant and witness so that he does not embarrass himself. Accountants with knowledge and experience in these areas, will find the expert witness process helpful and challenging: complicated tax matters, goodwill value, audit analyses, capital budgets, electronic information systems, and corporate profit.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1985
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