The Barson Group

Volume 13 - Issue 3                                                             

Fall, 2014                                                                                  



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The BARSON GROUP is pleased to announce its latest Mini-Book  
(publication anticipated in January)  
"Now That DOMA is (sort of) Dead" 

In This Edition
The Digital Approach (with a nod to Jackie Mason)
Goldman & Anti-Goldman - Going Both Ways - The Choice of a Valuation Date
Focus on Fun
Recent and Upcoming Speeches
CLE - Ongoing
April 5, 2014
Matrimonial Math ICLE
(New Brunswick, NJ)

September 30, 2014
Forensic Accounting - NJSCPA (Edison, NJ)
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The Digital Approach  

(with a nod to Jackie Mason)   


 There are three methods of valuation - cost, income and market. However, there is kind of a fourth method, which we refer to in the title as the digital or finger approach - more commonly referred to as the Rule of Thumb (ROT). The ROT approach tends to be a derivative of, but often the bastard child of, the market approach, and sometimes mixes in elements of the income approach. As a general comment, a ROT is questionable way to do a valuation, and only rarely should it be allowed to stand on its own. Any kind of ROT approach, any kind of use of a ROT, must be done very cautiously. It would be unusual for a ROT to be used as the exclusive measure of value, and not much better if it were to be used as the main approach to value. While there are exceptions, a ROT is more appropriate as a kind of rough sanity test, as little more than a sense of what one (or sometimes several) stream of thought believes the so-called average company in that field is worth. 


Click To Read The Entire Article




Goldman & Anti-Goldman - Going Both Ways

The Choice of Valuation Date 


Goldman has become somewhat of a buzz word, with that once proud family's surname being bandied about like an ignoble sack of potatoes. In a sense like Sheridan, it has become part of New Jersey's divorce lexicon. Goldman is kind of a bright line - relatively easy - the company went bankrupt after the complaint date. Clearly, as an equitable financial issue, there was nothing left to distribute. How restricted are we to such a bright line demarcation? Certainly most, if not all, of our readers have seen the Goldman weapon threatened in matters where there's definitely and clearly no bankruptcy, not even one likely, or even a modestly reasonable prospect. Rather, the business is now (allegedly?) not doing as well as it was just several months or a year ago, at the Date of Complaint, and thus is, perhaps, worth less. How much less - how much of an alleged decrease succeeds in drawing the subject business under that favorable, but tragic, Goldman umbrella?


Click Here for the full article 



   Focus on Fun


Accountants & Humor

A Sociological Fable


A number of years ago, the IRS had to rule on the valuation of an intangible asset (and ultimately therefore the amortization of same) that was structured in a tax shelter type vehicle. The IRS disagreed with the taxpayer over the depreciable value of the German film version of Jack London's "Sea Wolf". The taxpayer was claiming a 4 million dollar value, which he was then depreciating. The IRS took the position (and need we say it was upheld by the Courts) that considering that the film's North American premier was a 3-day run in Escanaba Michigan, with a total box office take of $144; and further, that Allied Artists, the film's distributor, projected that the national gross would be $576 - that therefore, a 4 million dollar value was probably unwarranted.



Click Here  For More 'Focus on Fun'





The BARSON GROUP  is proud to announce the publication of


"Divorce: The Accountant as Financial Expert" 

 by Kalman A. Barson, CPA/ABV, CFE, CFF 




***We are delighted to announce that the book is in its second printing!***


This is Kal's 6th text focusing on divorce related accounting services, including investigative accounting, business valuations, funds flow tracing and related issues.  While its primary audience is fellow CPAs, as well as attorneys practicing family law and judges sitting in the family section of the court, it is written in such a fashion so that it would be readily understood by the general lay public.  All royalties have been assigned to three charities devoted to helping women and children.


Kal's book can be purchased directly through the AICPA -    



Our Mini-Books: 


What to Look for & What to Challenge; Reading & Understanding Tax Returns, Financial Issues in Divorce Practice; Business Valuation - The Basics - complimentary copies for the asking.  Contact us if you haven't received your copy.