Governance IssuesTM
Volume 2021, No. 1
January 28, 2021
In This Issue
Boardroom evaluations are a great opportunity that should not be overlooked as covered in our first article. The second article provides an overview of liquidation basis accounting, which unfortunately has had a resurgence lately. Let our authors know your thoughts.
Boards risk falling into the abyss of a 'status quo' environment by simply going through the motions without implementing a robust evaluation process.
I find it interesting that while there is no shortage of oversight scrutiny on management’s activities, the same cannot be said of the board’s activities. Boards need to lead by example and demonstrate that they are holding themselves accountable, just like any other part of the organization.
By Howard B. Levy, CPA
Liquidation is the process by which an entity converts its assets to cash or other assets and settles its obligations with creditors in anticipation of ceasing all operating activities. It may occur voluntarily (e.g., based on economic conditions), upon a specified event (as for a limited-life entity), or involuntarily [e.g., by an entity’s creditors, a court (as in bankruptcy), or other parties].
Liquidation basis of accounting differs from going-concern GAAP principally in that neither the use of the historical cost model nor the presentation of historical operating results, cash flows or a classified balance sheet are generally considered relevant.
KU has joined the BDO Alliance
We are now an independent member of the BDO Alliance USA, a nationwide association of independently owned local and regional accounting, consulting and service firms with similar client goals. The BDO Alliance USA brings us additional tools and resources to better serve our clients with greater flexibility, efficiency and cost effectiveness.
Kral Ussery serves US public and private companies to protect and grow shareholder value, as well as non-profits and governments with internal controls and in combating fraud. Download our services flyer.
About Governance IssuesTM
Governance Issues™ is an electronic newsletter published by Kral Ussery LLC, a public accounting firm delivering advisory services, litigation support and internal audits. Topics focus on our practice areas of SEC compliance, governance, controls, IT general controls, risk assessments, IPO readiness, M&A transactions, restructuring, valuations, US GAAP and internal auditing.
Content in this newsletter is for general information purposes only and should not be used as a substitute for professional consultation.
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