Selling Your S Corporation: A Focus on Alternative Tax Structures

A newly permanent tax provision includes a favorable five-year recognition period for built-in gains following a conversion from a C to S corporation. The shortened recognition period is meaningful to many small business owners and gives S corporation shareholders more flexibility regarding the timing and tax structure of a sale transaction and could significantly influence the net value derived by company owners. Learn more about the evolving tax landscape with regard to S corporations and considerations related to tax structure and alternative elections.

Health Care Current – March 29, 2016

With MACRA disrupting the way health care businesses operate and alternative payment models proliferating, many health systems are reevaluating how to manage financial risk and maintain or gain market share. This week’s “My Take” explores whether provider-sponsored health plans (PSPs) could be the answer. Exemplifying the convergence of financing and care innovation, many PSPs have discovered that integration can be a catalyst to improve the value chain and reduce costs, but this model also comes with downside financial risks to consider.

Mid-market Slows Spending as US Growth Expectations Moderate: Survey

Spending among mid-market companies has slowed as executives’ growth expectations for the U.S. economy have moderated, according to a survey of more than 500 executives of mid-market companies from Deloitte Growth Enterprise Services. The survey found that while expectations for many metrics, including productivity, remained optimistic, executives indicated a pullback in outlooks for growth in profits, prices and capital investment. The survey results pointed to several barriers to business growth, including cost of health care and regulatory compliance.

Baosteel Resources CFO Yiming Wu on Mining, M&A and Managing Risk

As one of China’s largest steelmakers and one of the largest steel producers in the world, Baosteel Group Corp. is a bellwether for heavy industry. Yiming Wu, CFO of Baosteel Resources International, the company’s commodities mining and trading subsidiary, discusses how she is helping Baosteel adjust to China’s new economic normal and creating value for the business. Ms. Wu provides insights on doing business in China, the evolving role of the CFO in her homeland and what it takes for women to be successful leaders.

Behavioral Strategy to Combat Choice Overload: Weekend Reading

A foundational concept in the behavioral field is choice architecture, explaining how the way choices are organized influences behavior. However, a better architecture may be necessary to assist managers in leveraging insights from the field, according to a report from Deloitte University Press. In this report excerpt, authors Timothy Murphy and Mark Cotteleer offer a straightforward, managerial-focused behavioral science framework that puts the business objective where it belongs: first.

A Roadmap to the Preparation of the Statement of Cash Flows

While the accounting principle ASC 230 provides some guidance on cash payments and receipts that are classified as either operating, investing or financing activities, it does not provide consistent principles for evaluating the classifications in the statement of cash flows. A proposed ASU addressing several related issues was released by the Financial Accounting Standards Board in January and the comment period ends March 29. A new publication from Deloitte & Touche LLP summarizes the issues and provides interpretations and examples.

Designing Testing and Monitoring Components for Strong Ethics and Compliance

Testing and monitoring programs allow organizations to gather critical information on weaknesses in compliance programs and uncover deviations in expected behavior that might reveal potential material or systemic compliance risks. Yet testing and monitoring are often misunderstood and undervalued. Without such programs, compliance professionals don’t have an early warning system to help them identify potential compliance issues sooner rather than later.

Life Sciences CFOs: Considerations for Outsourcing Commercial Operations

For life sciences CFOs pursuing cost efficiencies, one avenue to explore is outsourcing support for noncore operations and IT processes, says Mel Walker, managing principal, CIS by Deloitte, Deloitte & Touche LLP. She discusses how such a move could help integrate day–to–day transactional and compliance support, while driving improvements in business decisions.  Among factors CFOs can take into account when considering a move from an in-house system to a managed services approach are access to specialized knowledge, analytics, standardized processes and new technology tools.

Health Care Current – March 22, 2016

As the U.S. health care system transitions to a system based on value, stakeholders are voicing uncertainty as to how medical innovation will be evaluated, much less rewarded, under these new models. This week’s “My Take” explores how value-based payment models can be adapted to curb rising health care costs while  encouraging the use of innovative treatments and cures.  It identifies four changes that may help integrate medical innovation into value-based care models.

CFOs Focus 2016 Growth Efforts on North American Home Markets: CFO Signals

In planning for 2016, CFOs are favoring a push toward higher investment in North American markets with little additional focus on Europe or China, except for Retail/Wholesale sector CFOs, who indicate that Europe and China continue to be important markets to their growth, according to Deloitte’s latest CFO Signals™ survey. Moreover, CFOs say their home markets are the most important to their growth plans, but the most recent survey also found some signs of diversification and significant variations across industries.