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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).
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
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.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.