GLG News by LBO and M&A Accounting & Tax Consultants

This post specifically discusses some key potential risks with inventories on the balance sheet that are common across a broad base of companies. The "Analysis" section below gives several recommended tips and techniques for investors on how to analyze inventories for these specific risks. ...

This post specifically discusses some key issues on the accounting practices companies use for capitalizing and amortizing software development costs. The "Analysis" section below gives investors several tips and techniques on how to analyze software development activities for signs of aggressive...

This post specifically discusses a common cash flow manipulation technique involving receivable securitization and factoring programs.  The "Analysis" section below provides some actual public company examples of how operating cash flow can be impacted and gives several...

This post specifically discusses some key potential risks with receivables on the balance sheet that are common across a broad base of companies.  The "Analysis" section below gives several recommended tips and techniques for investors on how to analyze receivables for...

In order to list on U.S. exchanges, the SEC currently requires foreign companies which prepare financials using international accounting standards (such as IFRS) to reconcile their reports to U.S. GAAP. The SEC is seriously considering allowing foreign companies to eliminate the required reconciliation...

The FASB recently passed a new accounting standard - SFAS 159 - which could improve financial reporting to a certain degree and yet, at the same time, lead to some counterintuitive impacts on the P&L and impair comparability among companies.  Unfortunately, the new standard...

Investors sometimes ask the question - what is a “quick but reasonable” way to efficiently assess the earnings quality of a company? The answer is to perform a “Cash Gap Analysis” – which is a high-level, quantitative test that involves comparing trends in net income relative to trends...

A recent study completed by three accounting professors found that hundreds of companies were identified as having compelling evidence of earnings management.  The "Analysis" section of this post discusses several reasons why investors should care about the earnings quality...

A recent study investigating the number of accountants serving on audit committees of public companies found the percentage of committees with at least one accountant nearly doubled from 21% in 2002 to 40% in 2006. A key factor to this increasing trend is attributed to an SEC rule in 2003 requiring...

The FASB recently issued a proposed accounting standard covering “cash-settled” convertible debt instruments – which have become popular in recent years. The standard, if finalized, could materially increase the amount of interest expense recorded on the P&L for applicable companies. The rule is...