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Proposed:
Special-Purpose Financial Reporting Framework |
The American Institute of CPAs released an exposure draft of the much-anticipated private company financial reporting framework on Nov. 1, 2012. As proposed, it is a self-contained special-purpose framework intended to be available for use in preparing financial statements for privately held smaller and medium-sized entities.
The framework proposed in the exposure draft, entitled Financial Reporting Framework for Small and Medium-Sized Entities, is a blend of traditional financial accounting methods and accrual income tax accounting methods. The guidance is less complicated and, as such, will be a less costly system of accounting and financial reporting by small and medium-sized entities when they are not required to have financial statements prepared using accounting principles generally accepted in the United States (U.S. GAAP).
The work of the AICPA in developing the framework should not be confused with the Financial Accounting Foundation establishment of the Private Company Council (PCC) to work with the Financial Accounting Standards Board (FASB). The council was established in an effort to focus on modifications that might need to be made to U.S. GAAP to take into account needs of stakeholders interested in private company financial reporting.
Contact WEC today to speak with one of our A & A experts and learn more about limited liability entities. |
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Valuations and Independence:
An increasingly difficult question for CPAs | |
Accountants and valuations analysts are often asked by clients to prepare a valuation of their business, but sometimes they have to pass on the work. Why?
If the CPA or analyst's firm also performs audit engagements for the company, there could be what is called a lack of independence, which is required for all firms performing audits. The decision about whether independence may be impaired is becoming increasingly complex and must be evaluated on a case-by-case basis.
It can depend on information a client reveals in private conversations - or the firm has access to - on the way those valuations will ultimately be used.
To find out more on analyzing your valuations and independence, click here. |
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Watch for Hidden Liabilities When You're Selling Your Company | |
You are ready to put out feelers for selling your company. Perhaps you have contacted your CPA to have preliminary due diligence begun. As you prepare to finalize your asking price, issues arise that you hadn't planned on. Hidden liabilities - those unplanned nuisances that can depress the value of your company - can put a real damper on your plans.
What are hidden liabilities? Items that you are peripherally aware of, that you cannot feel or touch, but that have an impact on a potential buyer's perception of your company's value. Here are some types of hidden liabilities.
- Below-market rate loans
- Unresolved tax issues
- Warranty and other reserves
- Unremedied environmental problems
- Litigation
To find out more on hidden liabilities, click here. |
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About Wall, Einhorn & Chernitzer, P.C.
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Wall, Einhorn & Chernitzer, P.C. (WEC) offers a local touch with regional scope and national resources. Serving clients since 1989, we are today the largest public accounting firm headquartered in Norfolk, Virginia and the second largest in the Hampton Roads region. Our team is comprised of professionals who are committed to a common vision as a high performance firm and a common goal to provide our clients with exceptional service.
WEC is an independently owned and operated member firm of CPAmerica International, one of the largest associations of CPA firms in the United States. Through our affiliation, we have instant access to the expertise and resources of more than 2,500 professionals across America. WEC clients benefit from the resources, experience and professional knowledge base of a national firm while still receiving the personalized service and attention that only a locally-owned, independent accounting firm can offer.
In addition to our Assurance and Tax services, WEC provides a range of Business Advisory services and solutions strategically customized to fit our clients' unique and individual needs. These services include Estate Planning, Entrepreneurial Services, Restructuring and Turnaround, Wealth Management, Business Valuation, Litigation and Dispute Consulting, Virtual Office Services, and Exit Planning.
The expertise of our CPAs and Advisors spans a range of business sectors. Our specialized industry niches include: Real Estate, Retail, Franchise, Construction, Government Contracting, Manufacturing & Wholesale Distribution, Technology and Not-for-Profit.
We are honored that WEC has been named as one of the "Best Places to Work in Virginia" in 2012 and 2013 by Virginia Business magazine, one of the "Top 25 Best Places to Work in Hampton Roads" by Inside Business, named to their "Hall of Fame" in 2010, and listed among the "Best Firms to Work For" by Accounting Today.
For more information, please visit us at www.wec-cpa.com.
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