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Accounting for business combinations under common control
Financial statement fruad
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In the this edition of the Wall, Einhorn & Chernitzer, P.C. (WEC)  A & A Advisor, you will find information on accounting for business combinations and financial statement fraud.
  
Accounting for business combinations under common control
In accounting and reporting for transactions that represent business combinations accounted for using the acquisition method, FASB Accounting Standards Codification (FASB ASC) 805, Business Combinations, applies.

However, this guidance for business combinations does not apply to combinations between entities or businesses under common control, according to FASB ASC 805-10-15-4(c). Particular guidance associated with common control transactions is included separately within the business combinations guidance at FASB ASC 805-50.

Some transfers of net assets or exchanges of shares between entities under common control result in a change in the reporting entity. In practice, the method that many entities have used to account for those transactions is similar to the pooling-of-interests method.

  
Contact WEC today to speak with one of our A & A experts and learn more!
Financial statement fraud - a rare but costly scheme
Although only 9 percent of occupational fraud cases involve financial statement fraud, organizations may find the financial impact of this fraud classification surprising and troubling.

The median loss from financial statement fraud was $1 million among the nearly 1500 cases of occupational fraud investigated by Certified Fraud Examiners and analyzed in the Association of Certified Fraud Examiners' 2014 Report to the Nations on Occupational Fraud and Abuse.

Financial statement fraud is one of the three main occupational fraud classifications. The others are asset misappropriations and corruption.

To find out more on financial statement fraud, click here.
A & A Service Leaders

   Joanna G. Brumsey, CPA       Julie L. Sokolowski, CPA        Susan R. Einhorn, CPA         Angela R. Kerns, CPA
              Shareholder                              Shareholder                           Shareholder                            Shareholder
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About Wall, Einhorn & Chernitzer, P.C.

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, and Not-for-Profit.

 

We are honored that WEC has been named as one of the "Best Places to Work in Virginia" in 2012, 2013 and 2014 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.