During the 1990s debate over the status of stock options as a corporate expense, the big technology companies argued passionately that, since stock option grants to employees don’t ding the corporate checkbook, they should not be recognized as an expense. Despite winning the initial battle (SFAS 123), the tech companies ultimately lost the war (SFAS 123R). Regardless of the ongoing debate about how best to measure earnings, stock-based compensation is a tool used by companies of all sizes and in all industries. In order to deliver the most reliable information to investors, companies need to carefully evaluate the value of such compensation packages when granted.
The Financial Reporting Blog
A weekly update on financial reporting topics curated by Mercer Capital’s Financial Reporting Valuation professionals.
Less than a year after its formation, the Private Company Council (PCC) is making progress in its initial efforts to reduce the costs and complexities of financial reporting for private companies that use GAAP.
Crowdfunding is gaining new life as a technique for companies to raise capital. On October 23, 2013, the SEC proposed rules governing equity-based crowdfunding. This article summarizes key highlights of the proposed crowdfunding rules.
One of the challenges faced by companies in the goodwill impairment testing process involves estimating the carrying value of a reporting unit when the corporate structure of the business has been reorganized. At Mercer Capital, we have assisted companies with this potential problem on numerous occasions.
Excitement about the upcoming debut of Twitter as a public company is palpable as related stories and rumors make the rounds in the financial press. Who are the winners, who are the losers?
- Bankruptcy and Restructuring Advisory
- Equity-Based Compensation Valuation
- Fair Value
- Impairment Testing
- Portfolio Valuation
- Purchase Price Allocation