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Present Value is a full-service appraisal firm offering a variety of appraisal services.
Present Value is a full-service appraisal firm offering a variety of appraisal services.
December 22, 2011 | Comments Off
Those waiting for a decision by the Securities and Exchange Commission (SEC) on whether to adopt the International Financial Reporting Standards (IFRS) will have to wait at least a few more months. According to SEC Chief Accountant James Kroeker at an AICPA National Conference, the SEC will need at least a few more months to produce a final report that will enable the organization to make a determination on the adoption of IFRS.
Kroeker attributed the delays to mixed results on a number of convergence projects between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), including convergence on guidance on fair value, revenue recognition, leasing, financial instruments, and insurance for financial reporting purposes.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading
17 Reasons Why You or Your Clients May Need a Certified Machinery and Equipment Appraisal
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Have a Present Value Christmas
Your appraisal time is here
I don’t know how it will go
But have a cup of cheer
Have a Present Value Christmas
There’s a comp right down the street
Or right next door or second floor
We’re sure to be complete
Oh ho, it comes in low
But we can wait and see
There might be changes to
Next year’s economy
Have a Present Value Christmas
And in case you didn’t hear
Oh by golly have a Present Value Christmas
This year
From all of us at Present Value, happy holidays everyone!
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading:
Present Value to All, and to All a Good Appraisal
Happy Holidays
December 15, 2011 | Comments Off
An article today in the Guardian, a UK-based publication, discussed a think tank report that came out yesterday written by the Adam Smith Institute. The report stated that there are loopholes in the International Financial Reporting Standards (IFRS) that allow banks to falsely inflate their profits and increase employee bonuses. Specifically, there are rules under IFRS that allow banks to call their expectations of future income current profits. This rule encourages banks to make risky investments with the potential for a high pay-off.
Another issue, according to this article, is the way that assets are valued. Banks are allowed to value their assets at market value; however, if assets had to be sold quickly in a forced sale to keep the company afloat, the bank likely wouldn’t get market value for those assets. This rule also helps to falsely inflate a company’s worth.
Given this report, it’s a very good thing that the SEC is carefully looking at IFRS and examining these loopholes before adopting the standards in the United States.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading:
AICPA Survey Shows that U.S. Accountants Have Some Knowledge of IFRS
Debate Continues About Whether or Not the U.S. Should Adopt IFRS
SEC Releases Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP
December 13, 2011 | Comments Off
Massachusetts Attorney General Martha Coakley has filed suit against five large banks, alleging illegal and deceptive foreclosure practices. The lawsuit named Wells Fargo, JPMorgan Chase, Citigroup, Bank of America, and Ally Financial.
In October 2010, it came to light that numerous banks had allegedly signed foreclosure affidavits without conducting the legally required reviews of loan documents. Attorneys general launched a multistate investigation of this so-called “robo-signing,” and talks continue to this day regarding a settlement that could reach $20 billion.
Coakley’s lawsuit is the first to result from the robo-signing issue. The lawsuit is seeking accountability from banks related to unlawful and deceptive conduct in the foreclosure process, including illegal foreclosures, false documentation, and deceptive loan modification practices.
In response to the lawsuit:
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
December 8, 2011 | Comments Off
Overpaying for a company in an acquisition is the “No. 1 Reason Acquisitions Fail,” according to a recent article in Inc. The article argues that the more you overpay for a company, the longer it takes to realize the economic benefits and cause a number of other problems over time, including potentially destroying shareholder value.
To avoid the pitfalls of overpaying, the article suggests that you develop a thorough understanding of the true worth of the business you’re targeting.
The article proposes that price decisions should be met with questions like:
You can read the full article here. If you’re thinking about buying a business, make sure you know what it’s really worth by getting a professional business appraisal to avoid overpaying.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
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Top 5 Business Valuation Posts from Present Value in 2010
Professional Business Valuation and Selling Your Business
Present Value LLC Helps Clients Navigate Crucial Business Decisions in a Down Economy
December 6, 2011 | Comments Off
In October, Congress decided to lower the top loan amount that the Federal Housing Administration (FHA) could back, but then at the end of last month, they decided to raise it again. This higher loan limit will be valid for the next two years and applies to the country’s priciest real estate markets. In October the limit was lowered to $625,500, and in November it was raised to $729,750.
The FHA backs home loans for home buyers who make a down payment of less than 3.5% of the cost of a home. Without federal backing, given the still-shaky real estate market, private lenders may be reluctant to lend large amounts of money. In New York City, one of the priciest real estate markets in the country, more than 1,500 loans were made in amounts between $625,500 and $729,750 last year. Without federal backing, many of those loans may have fallen through, which would be bad news for the real estate market.
This move shows that Congress recognizes that the housing market still needs help, at least in the short term.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional reading:
December 1, 2011 | Comments Off
Disagreements over real estate values are nothing new. A real estate appraiser who is familiar with an area, performs due diligence, and takes updates and upgrades into consideration will likely have a much higher valuation of a property than an appraiser who breezes in and cashes a paycheck. Unfortunately, both types of appraiser exist.
In a recent survey of members, the Massachusetts Association of Realtors found that more than half of agents said sales had been hampered by appraisals that came in low. Polls by the National Association of Realtors also have documented widespread frustration over faulty valuations, and the association ranks them among the major causes of contract cancellations.
So what can you do to lessen the chances that a bad appraisal will torpedo your transaction? Most importantly, be proactive. Federal rules allow you to provide the appraiser your own comps – recently sold properties of similar size and condition in your immediate area. Your realty agent can help you pull them together before the appraiser arrives.
Also, accompany the appraiser during his or her inspection of the house. Ask questions crucial to competency: Where are you based? How long have you been in the business? What certifications and professional designations do you hold? Do you know local agents or brokers who can supply you with pending sales information and guide you on neighborhood price trends? If the appraiser doesn’t have good answers, you are much more likely to end up with a poor appraisal. Alert the lender to your concerns as early as possible.
After the appraisal is completed, always ask for a copy to review; it’s your right under federal law. If the value comes in low, check everything in the report, from selection of comps to the accuracy of property measurements. If you find serious mistakes and the appraiser refuses to make corrections, appeal directly to the lender. Most have procedures to follow regarding “reconsiderations of value.” Ask for a second valuation by a locally competent appraiser, even if that costs you more money.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading:
How Appraisals Impact Home Sales
High-Value Home Appraisals: 10 Tips
Problems That Will Keep You from Getting a Mortgage
November 29, 2011 | Comments Off
As it continues to consider the factors relevant to a U.S. Securities and Exchange Commission (SEC) determination as to whether, when, and how the current financial reporting system for the U.S. should be transitioned to incorporate International Financial Reporting Standards (IFRS), on November 16, 2011, the SEC released a work plan: An Analysis of IFRS in Practice.
The purpose of the work plan is to consider specific areas and factors relevant to a Commission determination as to whether, when, and how the current financial reporting system for U.S. issuers should be transitioned to a system incorporating International Financial Reporting Standards.
Section I of the paper provides background, including the scope, process, and limitations of the paper’s analysis.
Section II presents observations of 183 companies in 22 countries in the following topic areas:
Section III presents a summary of frequent areas of comment from the Division of Corporation Finance’s reviews, as part of its disclosure review program, of the most recent SEC filings of approximately 140 of the approximately 170 foreign private issuers that were registered with the Commission at the time of the analysis and disclosed that they prepared their financial statements in accordance with IFRS as issued by the International Accounting Standards Board (IASB).
You can read the entire report here.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading
17 Reasons Why You or Your Clients May Need a Certified Machinery and Equipment Appraisal
Survey Finds Most U.S. CPAs Support Giving U.S. Public Companies Option to Adopt IFRS
SEC Releases Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP
November 24, 2011 | Comments Off
This Thanksgiving, we’re thankful not only for our friends and families, but for all of our customers and supporters who make it possible for us to do what we love. From all of us here at Present Value, we wish you a wonderful holiday.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
November 22, 2011 | Comments Off
The death of a loved one can bring with it great sadness … and in some cases, a mortgage. The recipient of a deceased person’s home has a lot to think about. In some cases, the will might state that other assets should be sold to pay off the mortgage, but in others the mortgage payments can pass directly to the recipient. In this case, people often just sell the home, but emotional ties can sometimes make that difficult. If emotional ties are the thing keeping the recipient from selling the house, the best thing to do is order an appraisal to make sure that what makes emotional sense also makes financial sense. Unfortunately, warm memories of sitting around the kitchen table won’t help with the mortgage or home maintenance.
Some people who inherit an underwater home, or one that is worth less than what is owed on the mortgage, ask if they can simply walk away. They can do this with the estate taking responsibility for the bad debt, but the bad news is that other assets in the estate, like a second home, might be used to pay off the debt.
If you find yourself in this situation, be sure to work with a certified appraiser and an attorney skilled in these matters.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional reading:
Refinancing Options for Underwater Homeowners