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Hidden Issues in Balance Sheets
Just one report in a financial statement, the balance sheet provides a snapshot of the financial condition of an entity as of a specific date. Users rely on the balance sheet as a means of evaluating a company's stability, investment potential, and creditworthiness, but it should not be accepted at face value. Increasingly, nonfinancial professionals are making recommendations based on the results of their analyses ' often accepting a balance sheet without question. Attorneys for creditors and debtors and bankruptcy judges are making recommendations or decisions based on only cursory consideration of potentially misleading balance sheets. Neglecting to delve into the issues more deeply can result in serious pitfalls ' and, ultimately, business decisions being made based on an inaccurate picture of the entity.
Balance sheets alone are of limited use. The amounts stated on a balance sheet represent the book values according to U.S. generally accepted accounting principles (GAAP) and not necessarily the fair market value (FMV), which is often of greater relevance. For example, the price of a parcel of land plus the cost to build the structure on it (the GAAP value) is not necessarily equal to the market price to purchase the combined finished project (the FMV).
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.