Posts Categorized: Valuation & Accounting

November Market Summary

In a sign of bullish investor sentiment, risk assets broadly retraced the losses incurred in the October market swoon. A combination of receding global growth fears, continued monetary policy report, and strong earnings results contributed to the rebound, in some cases driving equity indices to new highs. Central bank policy remains a focal point for investors and they continue to consider the ramifications of less accommodative Fed policy offset by more aggressive ECB and BOJ actions….

The Spin on Spin-Offs

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  Time Warner Inc. completed the spin-off of Time Inc. earlier this month. Likewise, CBS Corp. announced that it would split off its remaining shares in CBS Outdoor Americas Inc. It’s clear that tax-free spin-offs continue to be popular transactions for… Read more »

Making the Case for Crowdfunding Rules

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. Start-up companies and investors eagerly await SEC final rules implementing the JOBS Act’s crowdfunding provisions. The SEC, however, must ensure investors are adequately protected. Achieving this goal will help validate crowdfunding as a viable investment and capital raising tool. Janet Pegg, CPA,… Read more »

Lack of R&D Tax Credit Will Complicate First Quarter Earnings

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. Investors should be aware that first quarter earnings could have a little extra “noise” in them this year, and may not be comparable to previous years.  The problem results from Congress not extending the R&D tax credit again.  The credit has a… Read more »

Design to Serve the Changing Needs of the Reasonable Investor

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. The reasonable investor of 2014 is not the same as the reasonable investor of 1973. However, investors don’t have information to determine how companies are adapting to this new reality. In this situation, investors need comparable environmental, social, and governance (ESG) data… Read more »

Private Investors Exploring Emerging Asset Classes

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. Now that ESG (environment, social, governance) criteria are uncovering sound, long-term investments, private equity, family offices and pension funds are looking even farther afield for more such opportunities.  This new biomimicry asset class is the focus of Ethical Markets research in our… Read more »

The Nature of Investing

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. In addition to the material bounty provided by our natural world, we also have access to great stores of wisdom that are embedded in natural organisms and natural systems. The principles of biomimicry, Life’s Principles, are not the newest theories: they are… Read more »

Accounting for Timber – Lack of Convergence Illustrates the Differences between Historical Cost & Fair Value Accounting

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. Over the past few years one of the dominant hot topics in investment analysis has been fair value accounting.  After the credit crisis, there was a call by some to require fair value accounting for financial instruments.  The issue of the appropriateness… Read more »

Disclosure Overload: Don’t Throw Investors Out with the Bathwater

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Janet Pegg, Head of Accounting & Valuation at Cornerstone Capital Inc. and former Managing Director and Analyst of U.S. Accounting Research at UBS Investment Bank. Janet is an II-ranked Analyst. Subscribers can view the full article in the January edition. Although mandates… Read more »

Financial Instrument Accounting: Still Waters Run Deep

Extract from the Cornerstone Journal of Sustainable Finance & Banking, November 2013, written by Janet Pegg, Head of Accounting & Valuation at Cornerstone Capital Inc. The FASB and the IASB have been working since before the financial crisis to improve accounting for financial instruments. Although the Boards have worked together, it is probable there could… Read more »

Things We Can Kick…And Things Which are Precious

Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013, written by Janet Pegg, Janet Pegg is currently the Head of Accounting & Valuation at Cornerstone Capital Inc. Rather than having companies provide point-in-time valuations of intangible assets, what investors would find more useful is increased disclosure of the assets, both tangible and… Read more »