In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb gives insight into one of the most important parts of your business valuation: financial statements. Which issues should you pay close attention to and what are some real life examples you should be aware of? Listen to find out! Episode Highlights: Mark explains one of the most important parts of your business valuation approach. (0:25) What are appraisers trying to determine when they review five years worth of financial statements? (0:33) What issues do you have to consider when fine tuning your financial statements? (0:50) Mark gives an overview of five types of adjustments. (1:00) Mark gives a few examples of circumstances that could alter unusual & nonrecurring adjustments. (1:15) Mark lists non-operating assets that are commonly used. (1:35) What is a specific example of a non-operating asset? (1:50) Mark gives an overview of types of related party transactions. (2:15) Which types of accounting norms should be considered? (2:40) Key Quotes: “Valuation by itself is a difficult exercise. And, one of the most important parts of the approach is to normalize the financial statements that you're provided.” - Mark Gottlieb “We also have to consider non-operating assets. These non-operating assets commonly include items such as real property, investments, or other types of excess assets.” - Mark Gottlieb “An example of an non-operating asset may be excess inventory, or it may be a piece of real estate, or a plane or some other type of asset that is on the books of the business, but has no functioning or operating value to the business.” Resources Mentioned: Mark S. Gottlieb, CPA, PC (MSG) Reach out to Mark S. Gottlieb