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SPAC Fever Returns: Should Companies Consider It in Financing Decisions?

As of November 10, 172 SPAC transactions this year have raised approximately $63 billion, with an average deal size of $367 million, far exceeding levels from five years ago. SPACs are not new, but recent increased participation by high-quality companies has made them a viable alternative to IPOs. However, rapid listing comes with pressures from internal controls and compliance, equity dilution, and alignment with sponsors' long-term visions, requiring CFOs to evaluate carefully.

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The ESG Wave Reshapes the CFO Role: From Financial Gatekeeper to Sustainable Value Navigator

In 1970, economist Milton Friedman proposed the corporate philosophy of 'profit supremacy,' which dominated corporate governance for the following 50 years. However, driven by climate change and social justice movements, the ESG (environmental, social, and governance) movement is overturning this tradition. This article analyzes how ESG is changing the CFO role—from a mere financial reporter to a guardian of broader stakeholder value—and introduces the core and expanded indicator framework for ESG jointly released by the World Economic Forum and the Big Four accounting firms, as well as the challenges and opportunities CFOs face in implementing ESG.

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Pandemic Spurs Remote Work, CFOs Need to Address New Cross-State Nexus Challenges

The pandemic has led many employees to work from home, a practical measure that nonetheless raises complex issues such as cross-state tax nexus, payroll taxes, and individual income tax attribution. States have differing regulatory stances, with some lacking clear guidance, leaving businesses in compliance gaps. This article reviews nexus determination standards, individual income tax rules, employee work location tracking, and congressional legislative progress to help CFOs address potential tax risks.

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CFOs Urged Not to Delay LIBOR Transition Plans

Against the backdrop of LIBOR's impending exit, regulators and industry organizations urge CFOs to act early. Delay may lead to crowded-out customer negotiations, legal disputes, and reputational damage. ARRC has selected SOFR as the replacement rate, but the transition involves a large number of legacy contracts that require a systematic response.

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U.S. Tax Reform Legislative Correction: Qualified Improvement Property Regains 15-Year Depreciation Period and Accelerated Depreciation Benefits

The U.S. Congress passed the CARES Act to retroactively correct the drafting error in the Tax Cuts and Jobs Act regarding Qualified Improvement Property (QIP), restoring its 15-year depreciation period and making it eligible for 100% bonus depreciation. Businesses can claim refunds or change accounting methods for QIP placed in service in 2018 and later, but must comprehensively evaluate the cascading effects on other provisions such as NOL carryforwards and interest expense.

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After the CFO Departs, Who Will Take the Helm?

COVID-19 may usher in an era of unexpected turnover among finance executives. An analysis of 50 CFO transitions by CFO Dive shows that 75% of successors are internal, with most having strategic and operational experience. However, as CFO responsibilities shift toward strategy and operations, formal succession plans are becoming less common, and the probability of interim CFOs being promoted permanently ranges from about 10% to one-third. Executive search experts point out that the CFO role is evolving from an accounting-technical focus to an 'operational finance' orientation, and the disappearance of the COO position has further amplified the CFO's strategic weight.

Deep DiveJane Thier
Needs Determination and Eligibility Review: Key to Avoiding PPP Loan Liability Risks

Amid the economic impact of the COVID-19 pandemic, the rigor of needs determination and eligibility review when businesses apply for Paycheck Protection Program (PPP) loans directly affects their legal liability risks. Based on insights from Annie Railton, a partner at Goodwin law firm, this article analyzes the oversight structure under the CARES Act, three key review focuses, legal consequences of false claims, and specific measures to mitigate risks, emphasizing the importance of thoroughly documenting decision-making processes and acting in good faith.

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Impairment Testing of Goodwill under COVID-19: Challenges and Response Strategies

The economic uncertainty caused by COVID-19 has made fair value and future cash flow forecasting in goodwill impairment testing particularly complex. This article outlines the two calculation methods for impairment testing, key points for identifying triggering events, fair value assessment amid market turmoil, the application of scenario analysis, and the necessity for companies to explain impairment judgments to shareholders.

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Capital Stewardship for Revenue-Free Biopharmaceutical Companies: CFO Financial Strategies

Facing increasingly stringent market scrutiny, CFOs of revenue-free biopharmaceutical companies are adopting multiple strategies to protect capital: utilizing overseas cash refunds, AI-accelerated R&D, and simplified capital structures. Through case studies of INmune Bio, AVROBIO, and BioXcel Therapeutics, this article reveals how CFOs become efficient stewards of capital.

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