CLR
Showing 177–192 of 345 results
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In the News – Qualifying leases no longer require consolidation
August / September 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 435
Abstract: Certain borrowers that lease assets from related parties may now qualify for an alternative accounting method under Generally Accepted Accounting Principles that doesn’t require consolidation. That’s good news for lenders who often request supplemental schedules to reverse the effects of consolidation to get a clearer picture of financial results. This article lists four conditions that must be met for a borrower to opt out of the consolidation requirement.
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Dashboard reports: Let real-time data drive lending decisions
August / September 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 542
Abstract: Unearthing trends and early warning signals of financial distress from financial statements alone is challenging. Dashboard reports simplify the due diligence process by providing a one- or two-page summary of key performance metrics in a concise, visual format. As this article explains, these reports use customized ratios and graphs to tell the story behind the financial statements. They can’t replace a comprehensive year end review of a borrower’s financial statements and footnote disclosures, but they can be useful diagnostic tools for borrowers and lenders throughout the year.
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Play it again, Sam – Some borrowers report their financial results more than once
August / September 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 682
Abstract: Lenders become understandably uneasy when borrowers reissue their financial statements. For most borrowers, financial restatements result from an honest mistake or misinterpretation of accounting standards, rather than from incompetency or fraud. But that’s not always true. This article looks at a number of reasons, both innocent and not-so-innocent, that might call for a restatement. The lender must evaluate restatements carefully to unearth the underlying cause and thereby determine whether or not it’s best to continue with the borrower.
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Forecasting the future
August / September 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 846
Abstract: Forecasting can help borrowers anticipate future financing needs and prove that they’ll be able to repay loans. But how do lenders know whether a forecast is achievable — or merely wishful thinking? This article discusses how forecasts are more flexible and timely than in the past. They go beyond presenting historical financial data in order to help management evaluate the marketplace for emerging external threats and opportunities. Rolling 12-month forecasts, for example, are adaptable and look beyond year end. A sidebar notes the difference between a forecast and a projection.
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In the News – Skimmer scams skyrocket
June / July 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 420
Abstract: Skimmer scams potentially damage a company’s reputation, generate financial losses and compromise its ability to service debt. Although most common among retailers and restaurants, skimmer fraud is a risk for any business that accepts electronic payments. This article discusses some of the most common scams and what borrowers can do to help prevent them.
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The hunt for hidden liabilities and risks
June / July 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 566
Abstract: Proactive lenders search for undisclosed risks to get a complete assessment of their borrowers’ financial health. This article explains how the value of both assets and liabilities can be misrepresented on a balance sheet and why what’s off a balance sheet can be as significant as what’s on it.
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“Going concern” concerns
June / July 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 666
Abstract: CPAs reconsider the “going concern” assumption every time they audit financial statements. When the long-term viability of a borrower is doubtful, it may cause the CPA to issue a qualified audit opinion — or, worse, to withdraw from the job altogether. This article discusses the different types of audit opinions, which may have serious implications about a borrower’s ability to operate as a going concern. It also provides an update on FASB’s latest plans to reduce diversity in financial reporting about going concern issues.
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Coming soon: Private company exceptions to GAAP – Rules simplified for goodwill and interest rate swaps
June / July 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 855
Abstract: For years, small companies and their accountants have complained about the increasing complexity and costs of complying with Generally Accepted Accounting Principles (GAAP). In January 2014, FASB released two Accounting Standards Updates (ASUs) that offer private companies alternate reporting methods for goodwill and simple interest rate swaps. This article explains how the alternate methods differ from current GAAP. A sidebar lists a number of “triggering events” that can signal a need for testing goodwill impairment.
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Back to Basics – FAQs about the Red Flags Rule
April / May 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 434
Abstract: Nine million Americans will have their identities stolen this year, according to the Federal Trade Commission (FTC). But the FTC’s Red Flags Rule aims to reduce the risk of identity theft. Some commercial lenders mistakenly presume the rule doesn’t apply unless they make personal loans. But it actually does apply to many small business lenders — and their business borrowers. This article answers a few FAQs about the rule, including who’s required to follow it and how to comply.
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Balance sheets tell only part of the story
April / May 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 627
Abstract: A balance sheet presents the company’s financial position at a given moment in time. But the amounts shown on the balance sheet often don’t reflect current market values — and many valuable items are even omitted. This article discusses what a borrower’s balance sheet isn’t telling, as well as some diligence procedures that financial advisors use to evaluate potential risks and return.
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What kind of financial statements should a borrower provide? Levels of assurance: Compilations, reviews and audits
April / May 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 642
Abstract: Financial statements help lenders evaluate an organization’s performance and determine its ability to repay debt. But all financial statements aren’t subject to equal levels of analytical procedures, inquiry or testing by an outside accounting professional. In order of increasing level of rigor, CPAs offer three types of financial statements: compilations, reviews and audits. This article discusses what each can and can’t do and which one is appropriate for a given type of borrower.
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Small businesses, big concerns
April / May 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 863
Abstract: Last year, the National Federation of Independent Business (NFIB) identified the top five concerns of borrowers, including health care and energy costs and uncertainty over economic conditions. What differentiates strong borrowers from questionable ones is that they acknowledge key risks and take steps to prevent or mitigate their adverse effects. This article describes some of those steps, while a sidebar notes that the survey’s next five concerns are tax-related.
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Back to Basics – Beware of M&A rules of thumb
February / March 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 433
Abstract: Lenders often finance mergers and acquisitions, and sometimes after the buyer and seller have agreed on the selling price and terms. But it’s important to always inquire about the due diligence that a buyer has performed. Too often, the parties are eager to close, so they sidestep the formal valuation process. Instead, they may rely on industry rules of thumb to negotiate price. This article describes how such rules can be oversimplified, ambiguous or outdated.
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What tone does management set? Ethics starts at the top of the organizational chart
February / March 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 506
Abstract: Unethical behavior at the top of any organization — commonly referred to as the “tone at the top” — is among the factors that lead to fraud. That’s because attitudes about ethics flow down the organizational chart. This article lists types of misconduct that can destroy an organization and explains how to identify best practices.
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Looking at financials differently
February / March 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 694
Abstract: A lender conducting due diligence who only reviews past financial statements is not seeing the full road ahead — and that road might be littered with hazards. This article explains that an inquiry should start with a risk assessment involving the industry, economic conditions, sources of collateral and business operations. It then involves using certain key metrics to evaluate the financial statements. A sidebar notes that a profitability analysis should extend beyond the top and bottom of the income statement to certain individual line items.
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10 facts borrowers should know about health care reform
February / March 2014
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 903
Abstract: The cost of health insurance is the biggest concern small businesses face, according to a recent study. Part of the problem is that few businesses fully understand how the Affordable Care Act works. This article offers 10 useful facts that can be passed along to borrowers. It describes which types of employers may have particular obligations, along with tax credits that some companies can apply for.