“What is my company’s common stock worth as a percentage of its recently issued preferred stock?” Or, “What is the typical ratio of preferred to common stock?” I have been asked this question in some variation hundreds (thousands?) of times over the last decade – it likely only trails “Dad, can I have a snack?” […]
There is an old saying in financial statement analysis: A good balance sheet is mostly even better, and a bad balance sheet is mostly even worse in reality. The reason for this observation is that accounting rules keep preparers of financial statements within a certain range but also that preparers have some incentive to mean […]
Thursday, 18 June 2020, marked the preliminary peak of the story of Wirecard, the German DAX-listed payment processing company. That day, auditing company Ernst & Young refused to sign-off the annual report as their hopes to find roughly two billion Euros that are missing on the balance sheet have vanished into the thin air of […]
IR Global, the world’s largest exclusive network of advisory firms is delighted to introduce Lance King of Scalar. Lance has joined IR as our exclusive Business & Asset Valuations Member in Utah. Scalar is the leading independent valuation firm for tax, financial reporting, transaction advisory, and litigation purposes. Scalar empowers business leaders to make informed and […]
IR Global, the world’s largest exclusive network of advisory firms is delighted to introduce Denise Jardine of Scalar. Denise has joined IR as our exclusive Business & Asset Valuations Member in Utah. Scalar is the leading independent valuation firm for tax, financial reporting, transaction advisory, and litigation purposes. Scalar empowers business leaders to make informed […]
IR Global, the world’s largest exclusive network of advisory firms is delighted to introduce Steve Lindsley of Scalar. Steve has joined IR as our exclusive Business & Asset Valuations Member in Utah. Scalar is the leading independent valuation firm for tax, financial reporting, transaction advisory, and litigation purposes. Scalar empowers business leaders to make informed […]
The Binomial Option pricing model (“BOPM”) is one that is built on an intuitive logic and is one of the popular models used to value options. It addresses the inherent limitations of the Black Scholes Model. This newsletter discusses the form, structure and the applications of the BOPM. Binomial Lattice Model – ASC 718 Valuation
It is not a big secret that fixed costs are the real ugly thing for companies in crisis. While leading to rather good effects in times of growing revenues it turns to the bad once revenues decline: The higher the fixed cost exposure the stronger earnings react to a given decline in output. We usually […]
Art auction house Paddle8 is selling its intellectual property (IP), including an innovative proprietary platform credited with helping bring fine art sales online for the 21st Century, as part of its bankruptcy proceedings. The lot includes 31 domain names, platform architecture, customer/transaction database, 19 trademarks, three apps, newsletter subscribers and data, and social media accounts with […]
Continental AG (Conti) did not show any goodwill impairments in Q1/2020 (only some minor asset impairmets). However, in contrast to this, the big German automobile supplier popped-up top of our analytical screen in terms of Q1/2020 goodwill impairment necessities. How can one brigde these two sets of information? Source: Quarterly Report Q1/2020, p. 32. This […]
Times of crisis always bring out two distinct kinds of bad accounting behavior (along with a lot of good accounting behavior, of course) – one of them is obvious, the other one rather not so. The obvious one is that some companies will try NOT to record all the negative that the crisis requires them […]
Preface: I know that there are some readers who are mainly interested in accounting topics. And those will be served by this post, too, as the equity premium is also a very hot topic in accounting these days. But for getting there, you have to read through till the end… ? Furthermore, this blog post serves […]