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(xi) Contractual Purchases Litigation Litigation often results from the purchase of a company With such purchases, the audited nancial statements are used as the basis for the purchase or condition of the sale The issues often center on the valuation of assets or the quanti cation and disclosure of liabilities in those nancial statements Asset values in dispute may include such issues as proper use of last-in, rst-out (LIFO) or rst-in, rst-out (FIFO), inventory write-downs, unrecorded liabilities, accounting for impaired assets, amortization of goodwill, replacement cost versus book value, and realizable value of accounts receivable Many purchase and sale agreements contain a postclosing adjustment provision This provision allows for the purchase price to be adjusted based on events that occur or become known after the closing The accountant can serve as the expert for the buyer or seller with respect to the arguments as to why the purchase price should or should not be adjusted The accountant can also serve as the arbitrator or mediator on such cases The expert in these cases is usually called on to review the working papers of the independent auditor of the nancial statements From these working papers and the notes to the nancial statements, the expert can determine what accounting methods were employed and whether they are in conformity with GAAP and common industry practice Liabilities are of critical importance since the buyer needs to be alerted to all potential and contingent debts and encumbrances The accountant would determine whether there was adequate disclosure of the liabilities in the nancial statements that were either issued or relied on by the buyer The accountant may also need to evaluate whether subsequent events were reasonably foreseeable Contracts for the purchase and sale f a company sometimes include a provision regarding a material adverse change in the business In these cases, an accountant may be asked to review the nancial records of the company to search for any adverse changes in the business (xii) Breach of Fiduciary Duty These cases involve the issue of whether a trustee, executor, Of cer, director, or other duciary has breached his duciary duties, thus causing damages to the trust estate or corporation The accountant can play a vital role in proving or rebutting liability on the part of the duciary by demonstrating that the duciary acted correctly or incorrectly with respect to accounting, nancial, or economic issues or transaction (a) NonBusiness Cases Important nonbusiness issues include marital dissolution, and personal injury matters (xiii) Marital Dissolution In many states, the nancial aspects of a marital dissolution are governed by family law statutes that establish rules for sharing of income and the division of property The tax laws have also greatly in uenced the allocation of income and assets during and after a marital dissolution Most states divide assets equitably ; a few states are governed by community property rules Awareness of the local rules and practices is of critical importance to accountants in their nancial analyses In cases governed by community property laws, the accountant s role is often to trace assets, receipts, and disbursements to determine which assets are community property In cases governed by equitable distribution law, the accountant may be asked to analyze the assets in order to determine which assets are subject to equitable distribution He may also be asked to help an equitable distribution of marital assets The liability role of the accountant is to identify all assets and liabilities of the parties so that a fair and equitable distribution of assets results Most family law courts are equity oriented, so the substance of transactions should carefully be considered when analyzing nancial data The forensic accountant has to examine nancial data with concern for diversion of assets, improper cash transactions, and padded payroll and other fringe bene ts and perks that may deprive the nonworking spouse of a fair share of the business s net worth as well as a share of spousal support If nancial statements do not exist for closely held companies, such nancial statements may need to be prepared The accountant must be familiar with the local state family law The accountant.

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Fractional ownership, as the name implies, gives you an equity share in a property usually a resort-style development with rights to access it in proportion to your share For example, if you own 10 to 25 percent of a property, you have rights to use it 10 to 25 percent of the time Unlike a time share, in which you purchase only rights to use the property in proportion to your interest, a fractional ownership purchase puts your name on the title deed, along with those of the other owners The owners generally have an agreement outlining the procedure for selling interest in the property To avoid any misunderstandings or conflict, make sure you have a proper legal structure and appropriate documentation of the arrangement One of the draws of fractional ownership is that your unit is often in a rental pool when you re not using it Even if that option isn t offered, you may be able to rent it yourself You need to have your real estate lawyer read the unit contract before any commitment Either way, you ll get to enjoy some income in addition to having a getaway for your own use Most fractional ownerships of residential properties where the owner is registered on the land title as a fractional owner, tend to be from 1 4 to 1 10 It could have a higher fraction, but that is not the norm In most cases, based on the per unit cost of the fraction, the actual aggregate purchase value of he investment could be valued many times more than the actual market value. Code 39 Full ASCII Encoder In .NET Using Barcode maker for .NET framework Control .Related: Print Code 39 VB.NET , Intelligent Mail Printing Java , ASP.NET Code 128 Generator

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