• ORSA – Why should exempt companies care?

    Over the last few years the NAIC has established its expectations for insurance companies to maintain a risk management framework and conduct an Own Risk and Solvency Assessment (ORSA), including the filing of an ORSA Summary Report with state regulators. In 2012, the NAIC issued a Guidance Manual to provide insurers guidance with respect to reporting on ORSA, and later the NAIC adopted an ORSA Model Act. In 2012 and 2013 the NAIC conducted two separate feedback pilot projects and provided feedback and observations in a memo to the industry.
  • Divorce court wrestles with ‘vague and conflicting’ goodwill testimony

    Goodwill in a professional partnership poses unique challenges for valuators and courts, especially in a divorce setting. In a recent Texas case dense with valuation issues, it came down to corporate goodwill. “Logic tells me there is some,” the trial court said, “but it’s probably impossible to quantify.” The finding triggered an appeal.
  • Bogdanski says BV cases took ‘back seat’ in tax court this year

    The big news, says Prof. Jack Bogdanski (Lewis & Clark Law School) in his seventh annual symposium on developments in federal tax valuation, is that there were hardly any business entity valuation cases. Unlike last year, when cases involving family limited partnerships (FLPs) were aplenty, this year the Internal Revenue Service seems to have poured its resources into challenging taxpayer claims for charitable contribution deductions related to conservation and facade easements. The latter, in particular, have become a mass-marketing tax shelter tool in areas such as New York City and have triggered a vigorous response from the IRS. Litigation typically focuses on whether the appraisal is qualified, whether the expert testimony was admissible under Daubert, and finally—assuming the case is still alive—what the value of the restriction is.
  • Valuations high for private firms, says new Pepperdine report

    The value of privately held businesses is very high right now, according to the 2014 Capital Markets Report from Pepperdine. This annual report benchmarks both the current climate and projected outlook across multiple market segments for lending, investing, and acquiring capital.
  • Footnotes tell a story

    When reviewing financial statements, not-for-profit board members and managers sometimes make the mistake of focusing solely on bottom-line figures, but these statements also may include a wealth of information in their disclosures. Savvy constituents and potential supporters know this, so not-for-profit executives need to be familiar with the common types of disclosures and the information they make available for scrutiny.