Index to Litigation Support: The PricewaterhouseCoopers' Guide to Forensic Analysis and Accounting Evidence

Resource type: Chapter

Status: Published on 01-Dec-2009

Jurisdictions: England, Wales

This is the index to the Bloomsbury Professional book Litigation Support: The PricewaterhouseCoopers’ Guide to Forensic Analysis and Accounting Evidence, 5th Edition. Chapter 4 and the table of contents are also available free of charge as a sample of the book's contents.

Gerry Lagerberg and Christian Butter

Index

[References are to paragraph number and Appendices; italic page numbers are to the Introduction]

A

Academy of Experts 19.51

Account of profits 10.10, 10.13

Accountancy & Actuarial Disciplinary Board,

(see see Disciplinary investigations)

Accountant

cross-examination in court,
(see see Cross-examination)

day-to-day running of litigation support work,
(see see Practice notes)

expert witness, as,
(see see Expert witness)

fact-finding, regard for 20.93

forensic 7.16, 7.17, 7.21, 8.56

anti-competitive behaviour prohibition, role 16.47

fraud detection 9.14, 9.18, 9.24, 9.50, 9.52

investigations, involvement in,
(see see Regulatory work)

international dispute, involvement in 14.43

professional negligence,
(see see Professional negligence (accountant))

report,
(see see Expert accountant's report)

role in specific cases

accounts warranty breach,
(see see Financial statements)

construction contract claim,
(see see Construction contract claim)

divorce case, report in,
(see see Divorce)

personal injuries claim 6.4, 6.11,: (see also see also Personal injuries compensation)

professional negligence claim against another, expert in 8.56, 8.62

Accountant – contd

role in specific cases – contd

quantum of claim, as to 2.4 et seq, 3.6,: (see also see also Loss of profits/income)

reinsurance contract dispute, in,
(see see Reinsurance contract)

security for costs application,
(see see Security for costs)

taxation, significance for assessment of damages 15.4, 15.5

valuation,
(see see Valuation of business)

warranty claim 3.6,: (see also see also Warranty)

terms of reference 20.20–20.23, App K

Accounting terms App B

Accounts,

(see see Financial statements)

Alternative dispute resolution 19.4,

(see also see also Arbitration)

conciliation 19.59–19.63

patience required 19.63

rules of conduct 19.62

encouragement to use and refusal sanctions 19.5

independent expert, dispute resolution by 19.41 et seq

acceptance of appointment 19.47

advising one party, issues and procedure in 19.52–19.58

arbitration compared 19.42–19.45

contract provision for 19.41

fees 19.48–19.50

good practice points 19.51

negotiation 19.64–19.68

common mistaken theories 19.67, 19.68

key points 19.66

tactics 19.64, 19.65

Ancillary relief,

(see see Divorce)

Appeal

disciplinary tribunal, from 16.25

High Court, from, time-limit 17.45

Arbitration 19.1–19.40

accountant's role in 19.1, 19.30–19.40

arbitrator, as 19.34–19.40

expert witness, as 19.30–19.33

advantages 19.12–19.15

arbitrator, accountant as 19.34–19.40, 19.44

basic dos and don'ts 19.34–19.36

fees 19.37

key questions 19.40

preliminary meetings 19.38–19.40

arbitrator conversing direct with expert in 18.29

CPR, and use of 19.4, 19.5

challenge to decision 19.43

Chartered Institute of Arbitrators 19.4

City Disputes Panel 19.4

court litigation compared 19.2

'documents only' 19.29

dress at hearing 18.11

hearing 19.28

international disputes 19.6–19.11

nature of 19.3

judicial capacity, arbitrator acts in 19.42

organisations promoting 19.4

procedure

large cases 19.28, 19.29

stages in 19.16–19.27

reinsurance contract dispute 11.28, 11.32

Assets

expropriation of,
(see see Expropriation of assets)

loss of

compensation for, and CGT 15.17–15.21

concession 15.23, 15.24

settlement of claim 15.22–15.25

tax on compensation for,
(see see Capital gains tax)

valuation of,
(see see Valuation of assets)

Auditor

see also Accountant

criminal liability 8.32

duties 8.8

fraud, responsibilities relating to 9.50

auditing standards 9.50

co-operation with others 9.55

forensic accountant, assistance of 9.52–9.54

Auditor – contd

fraud, responsibilities relating to 9.50 – contd

ISA 240, steps under 9.50, 9.51

liability limitation agreement 8.2, 8.32, 8.75

negligence case, causation issues 8.41–8.44,: (see also see also Professional negligence (accountant))

public perception of 8.66

B

BIS,

(see see Company investigations)

Bank

negligence claim against accountant 8.67

Barrister

advocacy, ethics of 3

clerk to 17.21

cross-examination of expert

approaches to 18.12–18.15

devices used 18.31–18.38

see also Cross-examination

debate as to fusing of professions 17.20

examination-in-chief 18.27

expert report draft, going through 20.83

role

company investigation, in 16.10, 16.18

court, in 17.14–17.20

disciplinary tribunal, in 16.25

Building contract,

(see see Construction contract claim)

Business

company,
(see see Company, limited; Shares)

valuation methods,
(see see Valuation of business)

C

Capital gains tax

damages, on 1.65, 15.17–15.26

allowable losses 15.21–15.23

concessionary treatment 15.23, 15.24

date of disposal 15.35

disposal, receipt as 15.21

exempt compensation 15.17

Gourley principle, whether applies 15.30, 15.31

settlement negotiation aspects 15.25

right to take action as asset 15.18–15.20, 15.30

value of asset for 15.19, 15.20

Car

benefit of 6.17, 6.85

motor accident claim,
(see see Personal injuries compensation)

Case management 17.39, 17.40

Certainty

damages, establishing for 1.50–1.59

evidence and proof 1.51

example case 1.54–1.59

future or projected loss reasonably anticipated 1.53

speculative loss 1.52

uncertain assessment, effect of 1.51

Child

dependency award, fatal accident 6.78, 6.80, 6.81

personal injuries claim 6.44, 6.45

Civil Procedure Rules App I

arbitration, and 19.4, 19.5

disclosure 2.9, 17.34, 17.38

experts, extract and PD for App I

High Court procedure,
(see see High Court)

Claim

costs of preparing,
(see see Costs)

procedure,
(see see High Court)

Claim form 17.26, 17.27, App A

Claimant 17.25, App A

particulars of claim 17.28, 17.29

statement of truth 17.31

Commercial fraud,

(see see Fraud, commercial)

Commercial litigation

introduction to 17.1–17.3,: (see also see also High Court)

Company, limited

see also Shares

corporation tax 15.17, 15.18, 15.31

director's breach of duty to 4.10

inspections and investigations of irregularity,
(see see Company investigations)

liquidation, in, security for costs order 13.6

private

share valuation 7.48–7.51

transfer of assets in divorce case 7.75–7.80

see also Divorce

quasi-partnership 7.52–7.56

Company investigations 16.3–16.22

accountant, by 16.4, 16.18

appointment, statutory provisions 16.6

role 16.7, 16.8

Company investigations – contd

announcement, whether made 16.13

anti-competition behaviour,
(see see Competition regulation)

'competent person' 16.4

indemnity 16.20, 16.52

inspector, external, by 16.4, 16.4

appointment, statutory provisions 16.5

expertise 16.10

powers 16.14, 16.15

secretary to assist 16.10

statutory powers 16.11

official from Companies Investigation Branch, by 16.4

procedural steps 16.19, 16.20

purpose 16.12

Secretary of State (BIS) regulation 16.3, 16.4, 16.19

guidance 16.11

liaison with other regulatory bodies 16.21, 16.22

witnesses 16.16, 16.17

interviewing, guidance on 16.18

Competition regulation 16.44–16.47

anti-competitive behaviour prohibition 16.45

enforcement in UK 16.46

forensic accountant's role 16.47

Compulsory purchase of land 4.6

Conciliation,

(see see Alternative dispute resolution)

Conditional fee arrangement 17.48

Confidentiality

disclosure conflict, IP dispute 10.26, 10.27

expert report, confidential information in 20.88

Conflict of interest 20.6–20.19

cases on 20.10–20.13

House of Lords leading decision 20.7–20.9

checking and managing 20.14

USA

contingency fee arrangement, use in 20.19

legislation 9.32–9.34, 20.15, 20.16

Construction contract claim 5.1, App D

accountant's role 5.1, 5.2, 5.12, 5.13, 5.31, 5.87

causal linkage, when to show 5.57

co-defendants, acting for 5.38

different experts for different aspects, and co-operation between 5.38, 5.39

Construction contract claim – contd

adjudicator 5.11, 5.12

expert's assistance to 5.12

time-limit for decision 5.12, 5.39

analysis of claim varieties 5.87

bill of quantities or unit price contract 5.22–5.25

'build, operate and transfer' contract 5.28

completion certificate 5.10

construction litigation team 5.37–5.43

contract types 5.18

contractual relationships examined 5.14–5.16, 5.79

contractor and employer, binding contract on tender acceptance 5.7

cost-plus contract 5.20, 5.21

costs in, pattern of 5.88

damages 5.43

liquidated and general distinguished 5.13

delayed completion, analysis of 5.40, 5.41, 5.87, App E

design and build contract 5.18, 5.27

direct cost method 5.68, App C

direct loss/expense 5.52–5.59

'direct loss' and causation 5.52, 5.57

financing charges/interest 5.58, 5.78, 5.79

global claim 5.54–5.57

head office costs claim 5.58, 5.59, 5.88

increased cost of working 5.58, 5.74–5.77

loss of profits 5.58, 5.59, 5.71–5.73

overheads 5.58, 5.60–5.70, 5.88

typical heads 5.58

extension of time claim

calculation methods App E

issues arising 5.42

significance of 5.53

final account 5.10

fixed price contract 5.19

formulae App D

industry characteristics 5.3

inflation 5.77, 5.86

lump sum contract 5.19

errors in 5.48

original specification disputes 5.87

overheads 5.58, 5.60–5.70, 5.88

allocation methods App D

records 5.56, 5.59, 5.79

retention moneys, release of 5.9

settlement, consideration of 5.89

Construction contract claim – contd

standard form contracts 5.33–5.35, 5.43, 5.52

ACA 5.33

ECC3 5.35

FIDIC 5.35

ICE 5.33, 5.35

JCT suite of contracts 5.33–5.35

time and materials contract 5.26

turnkey contract 5.27–5.32

typical building project and problems arising 5.4–5.16

under-tendering 5.3, 5.80–5.85

valuation

'provisional sum' based on estimate, of 5.50, 5.51

variations,
(see see below)

value, final total 5.10

dispute resolution 5.11

variation, valuation of 5.44–5.49, 5.87

bill rates, at 5.45, 5.48, 5.49

daywork basis 5.46

fair rate or price determination 5.45

quantity surveyor values 5.44

quantum meruit 5.47

Contingency fee arrangement

USA, use in 20.19

Contract

breach, damages for,
(see see Damages)

construction,
(see see Construction contract claim)

reinsurance,
(see see Reinsurance contract)

sale, of,
(see see Sale and purchase contract; Warranty)

Contributory negligence

audit fault and causation chain 8.45, 8.47

limitation to damages from 1.37, 4.85

personal injuries claim 6.62

Corporation tax 15.17, 15.18, 15.31

Costs

conduct 17.49

court powers as to 17.49

discretion of judge 17.51

general rule 17.49, 17.51

High Court 17.49–17.52

assessment by costs judge 17.51

indemnity basis 17.51

records, need for 17.52

settlement, pressure for 17.48

important consideration 13.3

legal aid/public funding 17.51, 20.34–20.36

Costs – contd

legal costs 13.2, 17.52

Part 36 offer 17.50

preparation of claim, and damages award 1.83

security for,
(see see Security for costs)

Counsel,

(see see Barrister)

Court

cases heard by 17.5

cross-examination techniques,
(see see Cross-examination)

hierarchy 17.4–17.6

High Court,
(see see High Court)

legal process 2–3

Senior Courts of England and Wales, Supreme Court becoming 17.6

Credit note 3.30

Crime, proceeds of App G,

(see also see also Money laundering)

Cross-examination 18.1–18.46, App H

answering 18.16, 18.17

breaks in examination 18.39, 18.40

confidence and professionalism required 18.3, 18.14

courtesy in court 18.4–18.9

devices used by barristers, dealing with 18.31–18.38

difficulties with accounting evidence 18.45

dress and appearance for 18.10, 18.11

examination-in-chief 18.27

guidance 'do's and don'ts' App H

leaving witness box 18.18

likelihood of 18.1

pitfalls 18.12

preparation 18.1–18.3, 18.13, 18.19

court file 18.23–18.25

critical look at own affidavit 18.19

hearing other witnesses, advantages of 18.26

proofs of evidence 18.20–18.22

refreshing memory 18.16

stages of 18.27

cross-examination by other side, and re-examination 18.28

judge conversing direct and assessing evidence 18.29, 18.30

oath, and examination by own side 18.27

transcripts in long trial 18.41–18.44

Currency 1.75

choice for reinsurance settlement 11.13

damages calculation where transaction in foreign currency 14.30–14.41

case 14.31

Currency – contd

damages calculation where transaction in foreign currency – contd

foreign exchange losses 14.39

indirect losses, and 14.37

interest 14.15, 14.40

liquidated damages 14.35

rules 14.32–14.34

tort claim 14.38

unliquidated damages 14.36

interest on damages 14.15

tax on award made in foreign currency 15.49

D

Damages

background 3–4, 1.1–1.3

case law, enshrined in 1.84

certainty for,
(see see Certainty)

compensatory 1.11, 1.17, 1.23, 4.3

concepts underlying 1.26–1.34

new for old, court approach 1.30–1.34

consequential loss 1.27–1.29

contractual 1.7, 1.8, 1.10–1.16, 12.7

basic rule 1.10, 12.4, 12.5

compensation for loss of bargain on breach 1.11

contract impossible to complete, alternative measure for 1.15, 1.16

principles for quantum 1.13

terms of contract, importance of 1.12

expert's view needed at early stage 4

foreign currency issues 1.75, 14.30,: (see also see also Currency)

general 5.13, 6.12, 6.19, 6.59, 6.61, 6.73

interest on, personal injury 14.16

IP case 10.5, 10.7–10.9, 10.13

interest,
(see see Interest)

limitation to 1.36–1.59

liquidated 5.13

loss, pecuniary,
(see see Loss of profits/income; Personal injuries compensation)

lump sum award 1.4, 1.9

meaning 1.4–1.25

measure of,
(see see 'quantum' below)

misrepresentation, from 1.19–1.25

breach of contract 1.19

fraudulent 1.21–1.23

innocent 1.25

negligent 1.24

tort, claim for deceit 1.20

Damages – contd

mitigation 1.23, 1.46–1.49

non-pecuniary loss 1.26

pecuniary 1.26,: (see also see also Loss of profits/income)

periodical payments 1.9, 6.82,: (see also see also Personal injuries compensation)

personal injuries, for,
(see see Personal injuries compensation)

quantum 1.6, 1.7

expenses 1.13

inflation 1.67–1.69

insurance 1.70–1.74

interest 1.66, 14.28

principles 1.13, 8.50, 12.2

profit loss, computation for,
(see see Loss of profits/income)

taxation as issue,
(see see Taxation)

valuation methods, relevance to dispute on,
(see see Valuation or business)

restitutionary 1.35

'Smith v Manchester' damages 6.55

special 6.12, 6.19, 6.57, 6.59

interest on, personal injury 14.16

taxation issues 1.60–1.65, 15.1 et seq,: (see also see also Taxation)

tort, in 1.7, 1.8, 1.17, 1.18

basic rule 12.6

foreign currency, award in 14.38

loss of profits calculation,
(see see Loss of profits/income)

professional negligence,
(see see Professional negligence (accountant))

warranty breach,
(see see Warranty)

Death

dependant's claim for,
(see see Fatal accident)

Debt

warranty on collectability 3.28–3.30

credit notes issue to cancel 3.30

efforts to collect, reasonableness 3.29

Defendant App A

statement of case 17.30

Deterioration 3.32

Director

breach of duty to company 4.10

future earnings, calculation of loss of 6.7, 6.46, 6.47

Disability, claim for,

(see see Personal injuries compensation)

Disability pension 6.54

Disciplinary investigations 16.23 et seq

AADB 16.23, 16.29

administration 16.24

aims 16.25

regulatory guidelines 16.32

accountant's involvement 16.23, 16.25, 16.28–16.31

appeal right 16.25

complaint origination 16.26

stages 16.23–16.26, 16.32,16.53

tribunal, nature of 16.27–16.32

formality varies 16.51

members 16.23, 16.25, 16.28–16.30

powers 16.27

Disclosure

arbitration, in 19.28

'Bankers Trust' order 9.42

High Court, in,
(see see High Court)

meaning App A

Norwich Pharmacal order 9.41

privilege from 17.37. 20.56, 20–.57

regulator, to

accountant's role where error or fraud 16.49, 16.50

examples 16.48

standard disclosure, CPR 2.9, 17.34, 17.38

reasonable search required 17.37

Discounted cash flow (DCF),

(see see Valuation of business)

Dividends 7.94

dividend yield valuation basis 4.30–4.32

Divorce 7.1 et seq, App F

accountant's role 7.1, 7.3, 7.4, 7.98

evidence in court, guidance on use of 7.5, 7.27,: (see also see also Cross-examination)

exchange of reports 7.4

financial settlement, in reaching 7.85

forensic accountant, matters for 7.16, 7.17, 7.21

pension review and settlement aspects 7.62

preparation of report 7.8

resources, in establishing 7.11 et seq

ancillary relief application (Form A) App F

capital sum, guidance on 7.6

case law 7.28

Charman v Charman 7.36–7.38, 7.78, 7.80

McCartney v Mills McCartney 7.38

McFarlane v McFarlane 7.34, 7.35

Miller v Miller 7.31–7.33

Divorce – contd

case law – contd

summary from 7.41

White v White 7.29, 7.30, 7.95

costs, and financial disclosure 7.18, 7.19

economic downturn, significance for 7.96–7.98

factors for court 7.2

family business,
(see see 'private company' below)

family trust as money source 7.75–7.80

discretionary trust, inclusion of assets from 7.76, 7.80

court approaches, summary 7.80

trustees as parties 7.77

financial settlement 7.85–7.95

asset division 7.85, 7.91, 7.92

capital sum computation, 'needs' basis 7.86–7.89

capital sum computation, 'reasonable requirements' 7.86–7.89

forms of 7.85

liquidity problems in asset division 7.93–7.95

financial statement (Form E)

disclosure of information in 7.10

incomplete, believed to be 7.16

scrutiny of 7.11

HMRC tax liability, and information revealed 7.23–7.26

hedge funds 7.71–7.74

issues for valuer in matrimonial case 7.73

personal vs professional goodwill 7.73, 7.74

valuation problems 7.71, 7.72

information prior to first appointment 7.12, App F

pension arrangements and settlements 7.62–7.65, App F

court approaches 7.64, 7.65

difficulties 7.64

earmarking 7.63

sharing 7.63

pre-nuptial agreement 7.42–7.47

private company

capital, methods of raising 7.94

quasi-partnership, treatment as 7.52–7.56

raising cash, when main income source 7.57–7.61, 7.93–7.95

share valuation 7.48–7.51

transfer of assets out, setting aside 7.75

Divorce – contd

private equity funds 7.66–7.70

carried interest, approaches to valuation of 7.69, 7.70

procedure App F

questionnaire, use of 7.13–7.18

obfuscation, overcoming 7.21, 7.22

tailoring to case 7.18

useful information 7.17, 7.20

resources, establishing 7.2, 7.8 et seq

rules in family proceedings 7.7, App F

tax implications 7.81–7.84

valuation of business 4.8

Due diligence 3.1, 3.2

E

Earnings, loss of future

child 6.44, 6.45

court approach 6.45

company director or employee shareholder 6.46, 6.47

fatal accident 6.77–6.80

future disadvantage in the labour market ('Smith v Manchester' damages) 6.55

future earnings 6.33–6.43

discount rates applied 6.41–6.43

inflation and interest rates 6.41

multiplicand 6.36, 6.37

multiplier 6.36, 6.38

residual earnings potential 6.39

uncertainty and factors connected with 6.33–6.35

varying assumptions, figures to reflect 6.40

interest, position on 6.59

loss of job satisfaction 6.56

partner 6.47

past earnings 6.13–6.16

pension,
(see see Pension)

taxation issues, Gourley principle 15.33

undisclosed 'black market' earnings 6.48, 6.49

Electronic documents

disclosure 17.35, 17.36

expert's report 20.87

Employee,

(see see Earnings, loss of future)

Equity value,

(see see Shares)

Estate and trust cases

share valuation 4.7

European Court of Justice

IP cases, more frequent involvement in 10.29

Evidence

accountant's written, forms of 20.60, App N

court file 18.23–18.25

annotation 18.24, 18.25

taking into witness box, effect of 18.23

cross-examination,
(see see Cross-examination)

fraud, on,
(see see Fraud, commercial)

proof of evidence 18.20–18.22

transcripts 18.41–18.44

Expenses 1.13

construction contract, direct loss or expense,
(see see Construction contract claim)

future loss, personal injuries claim 6.58

medical,
(see see Medical expenses)

Expert witness 1–8

accountant as 5–8

contribution of 5–6

help for 1

appointment 5

arbitration, in 19.30–19.33

attributes 5

Civil Procedure Rules applying App I

court powers as to 17.41

cross-examination on report,
(see see Cross-examination)

duties 7–8

immunity from suit for court evidence 20.39, 20.46,: (see also see also Liability limitation agreement/clause)

independence and objectivity 6–8, 20.6, 20.14, 20.15, 20.37

independent expert for dispute resolution,
(see see Alternative dispute resolution)

instruction

example letter App J

protocol for 17.43

medical,
(see see Medical report)

meetings between experts,
(see see Meetings of experts)

overriding duty to help court 17.42, App I

declaration in report App L

report,
(see see Expert accountant's report)

single joint expert 17.41, App I

Expert accountant's report 20.59–20.88, App M

confidential information, presentation in 20.86

counsel going through 8, 20.81

Expert accountant's report – contd

criticism, case 20.79

cross-examination on,
(see see Cross-examination)

declaration in App L

drafting points 20.66–20.78

reviewing draft 20.79

electronic submission 20.79

evidence in, presentation methods 20.84, App L

example 20.68, App M

'executive summary' 20.82

format 20.67, 20.68

Practice Direction App I

good practice guidance 20.57, 20.58

information gathering 20.66, 20.67

instructions summary in report, CPR requirement 20.23, App I

opinions or facts, check on 20.80

presentation, rules for 20.83–20.87

figures in 20.84

paragraphing and numbering 20.83

sample for a compensation claim App M

structure for 20.68, App M

appendices 20.75

background section 20.72

concision 20.76, 20.77

conclusion 20.73

introduction 20.68–20.71

several team contributors to 20.74

typing, collating and printing arrangements 20.85

Expert Determination Rules 19.51

Expropriation of assets

damages awards, and 1.76–1.82, 4.50, 4.71

exchange rates, effect on quantum calculation 1.82

going concern, company is 4.9

start-up phase, company in 4.9

lawful

compensation 1.80, 1.81

conditions for 1.77, 1.78

tribunal terms, importance of 4.9

unlawful 1.79, 4.50

compensation 1.80

valuation, issues for expert 4.17

F

Fatal accident

damages claim 6.74–6.83

bereavement claim (non-pecuniary loss) 6.83

Fatal accident – contd

damages claim – contd

child, for 6.78, 6.80, 6.81

loss of dependency, value of 6.80, 6.81

lump sum or periodical payments 6.82

measure of damages 6.74–6.76

multiplicand 6.77

multiplier 6.78, 6.79

overview 6.74

widow's claim 6.76, 6.80, 6.81

Fees 20.28–20.38, App K

CGT, allowable loss for 15.21

conditional fee arrangement 17.48

contingency fee arrangement, use in USA 20.19

estimate, giving 20.28–20.30

fixed 20.31

hourly rate 20.31

independent expert for ADR, as 19.48–19.50

'no win, no fee' basis 20.37

payment

advance, under fee agreement 20.33, App K

timing of 20.32

public funding 20.34–20.36

records of work for 20.38

success fee 17.48

Financing charges

see also Interest

construction contract claim 5.58, 5.78, 5.79

Financial Services Authority 9.29, 9.39, 9.47

appointment of inspector or accountant for investigation 16.5, 16.6, 16.8

Financial settlement on divorce,

(see see Divorce)

Financial statements

completion of accounts on sale 3.31, 3.32

consistency concept 3.17–3.24

accountant's familiarity with 3.17

guidance for those instructing expert 3.18–3.21

examination of 2.12, 2.15, 2.21

material misstatement, risk of, and steps for auditor 9.49

professional negligence case

initial review by expert in 8.69–8.71

reliance on 8.18, 8.22

Financial statements – contd

true and fair view

hindsight issue 3.14

material errors 3.9, 3.10

warranty as to,
(see see Warranty)

Financial warranty 3.5, 3.6

see also Warranty

general 3.5

specific 3.5

Foreign currency,

(see see Currency)

Fraud, commercial 9.1

accountant's role in detection 9.14, 9.18, 9.24, 9.48

allegation of, code of conduct on 17.32

auditor's responsibilities,
(see see Auditor)

background 9.1–9.4

conditions 9.6

evidence 17.32

expert report from accountant 9.26

Fraud Triangle concept 9.6

incentive for 9.7–9.10, 9.15

opportunity 9.11, 9.18

rationalisation 9.12, 9.13, 9.22

information gathering 9.37–9.42

'Bankers Trust' order 9.42

digital data 9.37

forensic accountant's role 9.38

freezing injunction 9.42

methods in criminal proceedings 9.40–9.42

Norwich Pharmacal order 9.41

request under Freedom of Information Act 2000 9.39

interviews

FSA powers 9.47

forensic accountant, and 9.48, 9.49

police procedures 9.45–9.46

recording or taping 9.45, 9.48, 9.49

refusal to answer, inference from 9.46

SFO powers 9.47

transcript 9.45

legal procedures 9.24, 9.27

accountant to have basic knowledge of UK law 9.27

Criminal Procedure Rules 9.25

domestic legislation, summary App G

international 9.28

US 9.30,: (see also see also United States of America)

money laundering 20.17, 20.18

occurrences of 9.5

'red flags' for 9.14

motive 9.15–9.17

opportunity 9.18–9.21

Fraud, commercial – contd

'red flags' for – contd

rationalisation 9.22, 9.23

scope of 9.1

Fraudulent misrepresentation 1.21–1.23

Freezing injunction 9.42

G

Goodwill, damage to 2.49, 2.50, 15.17

Gourley principle 15.29–15.33

capital gains issues 15.30, 15.31

loss of income, reduction of damages for tax 15.29

calculation of tax 15.32

future earnings compensation 15.33

person not to be placed in better or worse position than in contract carried out 15.29

H

Hedge funds

valuation in matrimonial case,
(see see Divorce)

High Court

appeal, time-limit 17.45

case management 17.39, 17.40

claim form 17.26, 17.27

costs,
(see see Costs)

disclosure of documents 17.34–17.38

electronic documents 17.35, 17.36

privilege 17.37

standard 17.34, 17.37, 17.38

timetable 17.34, 17.39

use of disclosed document 17,38

divisions 17.5

experts in,
(see see Expert witness)

judge 17.7–17.11

judgment 17.44

jury 17.22

pre-action protocols 17.25

procedure 17.23 et seq

CPR 2.9, 17.23, 17.24, 17.34, 17.41

settlement or compromise of case 17.46–17.48

statements of case 17.28–17.30

statement of truth 17.31

third party, adding 17.33

time-money element 17.54–17.57

House of Lords

transfer of judicial functions 17.6

I

Income

income tax 15.8–15.10

deductibility of damages, issues 15.36–15.41, 15.45

interest on damages, on 15.14

loss of, damages for,
(see see Loss of profits/income)

Indemnity 16.20, 16.52

Indemnity basis costs 17.51

Inflation 5.77, 5.86, 6.71

Information

digital, obtaining for commercial fraud investigation 9.37

disclosure, standard 2.9

Information technology (IT) claim 12.1

both contract and tort, in 12.3

characteristics 12.1

contract breach 12.7, 12.11

contractor, remedies for 12.33–12.37

damages, principles 12.2–12.6

double counting 12.32, 12.37, 12.38

limitation of liability 12.30, 12.31

loss of profits 12.8–12.10

breach of contract claim, example 12.11–12.18

causation 12.22, 12.38

foreseeability 12.23, 12.24, 12.38

misrepresentation, as result of 12.19–12.21

mitigation 12.22

reasonableness 12.32, 12.38

remoteness 12.23

tort, claim in 12.25–12.29

wasted costs 12.17, 12.29, 12.37,12.38

Inheritance tax 15.27

Injunction

freezing 9.42, 10.6

intellectual property dispute, in 10.6

search order 10.6

Insolvency

auditor negligently failing to notice 8.53

Instructions from solicitor 20.20–20.23, App I

summary in report, CPR requirement 20.23

typical letter 20.20, App J

Insurance,

(see see Reinsurance contract)

Intellectual property 10.1

accountant's involvement as expert 10.4, 10.5

expert report,
(see see 'financial report for damages claim' below)

Intellectual property – contd

accountant's involvement as expert – contd

meeting instructing solicitors 10.14

principles and precedents, familiarity needed 10.12

special considerations for IP disputes 10.24–10.27

confidentiality and disclosure conflicts 10.26, 10.27

confidential information, presentation in expert report 20.87

considerations for expert 10.24–10.27

disputes as specialist area 10.30

financial report for damages claim 10.15–10.23

principles for 10.15

problem areas 10.16

global aspects 10.29

Gowers Review of IP 10.28

infringement

account of profits 10.10, 10.13

damages 10.5, 10.7–10.9, 10.13

evidence 10.7, 10.12

injunction 10.6

liability 10.5

patentee's subsidiaries suffering loss, compensation award 10.11

international enforcement 10.2

inventor's personal involvement in dispute 10.24

licence agreements 10.22, 10.23

nature of rights, and conflict with consumer protection 10.3

profits in relevant industry, evidence on 10.25

royalties

choice of 10.17, 10.18

examination or audit of 10.22, 10.23

rate 10.15, 10.16

relevant sales to be applied to 10.15, 10.19–10.21

scope 10.1

WIPO 10.2

Interest

claim required 6.59, 14.4

common law, at 14.4–14.7

contract dispute 1.66

provision for 14.3

no provision for 14.4

costs, on 14.29

damages, on 1.66, 14.8–14.13

court discretion 14.11

foreign currency 14.15, 14.40

Interest – contd

damages, on – contd

quantum calculation, and 14.28

statutory provision 14.8–14.10, 14.26

taxation treatment 15.14–15.16, 15.43, 15.44

insurance money, effect of receipt of 14.21

interest on 14.24–14.29

annual interest 15.45, 15.46

arrears of interest 15.42

simple or compound 14.24–14.27

interest period 14.20–14.23

judgment debt 14.22, 14.23

personal injury/wrongful death claim 6.59, 14.3, 14.12

claim required 6.59, 14.12

court obligation to award 14.12

rate of interest 14.16

recoverable benefits 14.17

rate 14.14–14.19

court discretion 14.14

tort claim 1.66

International dispute,

(see see Arbitration; Currency)

Inventory

change of ownership, effect on 3.25–3.27

Investigations

ad hoc, accountant's involvement 16.33–16.38

examples 16.33, 16.34

independence 16.36

witnesses, and 16.37, 16.38

company,
(see see Company investigations)

disciplinary,
(see see Disciplinary investigations)

J

Judges 17.7–17.11

Judgment debt

interest on 14.22, 14.23

Juries 17.22

L

Lawyer,

(see see Barrister; Solicitor)

Legal Services Commission 20.34

Lexicons

accounting App B

legal App A

Liability limitation agreement/clause

expert witness work, relevance to 20.39–20.41, 20.45

court criticising experts, cases 20.43–20.45

immunity without, extent of 20.39–20.43

impact of 8.32, 8.75, 20.39

introduction of 8.2, 8.32

standard term, circumstances for 20.39

Liquidated damages 5.13

foreign currency 14.35

Liquidation, company in 13.6

valuation of assets, company facing liquidation 4.41

Loss of profits/income 2.1 et seq

calculation 2.3, 2.27–2.43

deferred revenue, claim featuring 2.35, 2.36

gross profit, factors 2.37, 2.38

lost sales 2.28–2.34, 2.37

management time, cost of 2.39–2.43

certainty aspects,
(see see Certainty)

concepts, illustration of 1.54–1.59

construction contract, head in 5.58, 5.59, 5.71–5.73

damages received for, taxation of 15.8, 15.16

personal injuries case 15.29

deferred revenue 2.35, 2.36

double counting 2.45–2.48

evidence of 2.2

accuracy 2.10

collecting data 2.7–2.11

external 2.22, 2.23

financial statements 2.12, 2.15, 2.21

internal documents 2.16–2.21

expert, use of

documentation knowledge of 2.11

introduction 2.4–2.6

schedule, preparation of 2.12, 2.13

visiting scene, advantages of 2.24–2.26

goodwill or reputation, claim for loss of 2.49, 2.50

IT claim,
(see see Information technology (it))

lost sales 2.28–2.34

gross profit, goods not yet manufactured 2.37, 2.38

methodical approach required 2.51

mitigation 1.23, 1.46

overstating claim, and effect of 2.12–2.14

Loss of profits/income – contd

VAT, recovery of 2.44

Lump sum

construction contract 5.18

damages 1.4, 1.9

divorce settlement, for

assets, division of 7.85, 7.91–7.95

Duxbury formula 7.29, 7.40, 7.87, 7.89, 7.90

Flick calculation 7.40, 7.87

'needs' basis calculation, and 'reasonable requirements' 7.85, 7.86–7.90

fatal accident claim 6.82

personal injuries claim,
(see see Personal injuries compensation)

tax treatment of interest on 15.15

M

Medical expenses 6.7, 6.19–6.25

Medical report

disclosure 6.6

personal injuries claim, for 6.6

Meetings of experts 20.88–20.92

agreement reached, when binding 20.92

CPR, ordered under 20.88, 20.89, App I

circumstances for 20.88

joint statement following 20.91

preparation for 20.90

purpose of 20.88

Misrepresentation

damages arising from,
(see see Damages)

employee, by, effect on professional negligence claim 8.48

IT claim 12.19–12.21

reinsurance contract, inducing 11.34, 11.35

Mitigation 1.23, 1.46–1.49

Money laundering rules 20.17, 20.18

N

Negligence

contributory,
(see see Contributory negligence)

directors or management, effect of 8.45, 8.48

professional,
(see see Professional negligence (accountant))

Negligent misrepresentation 1.24

Negotiation,

(see see Alternative dispute resolution)

O

Ogden Tables, use of

fatal accident 6.78

personal injuries case 6.23, 6.38, 6.52, 6.54

P

Part 36 offer 17.50

Parties

third party, adding 17.33

Partner

loss of income, personal injuries claim 6.14, 6.47

Patent,

(see see Intellectual property)

Payment into court

income tax, wrongful dismissal case 15.12, 15.13

interest accruing on, taxation 15.48

Pension

divorce, arrangements on,
(see see Divorce)

personal injuries claim 6.51–6.54

disability pension, effect of 6.54

enforced early retirement, loss through 6.7, 6.17

self-employed person 6.53

state retirement pension, non-deductibility 6.32

valuation 6.52

Periodical payments

fatal accident claim 6.82

personal injuries claim,
(see see Personal injuries compensation)

Personal injuries compensation

contributory negligence 6.62

earnings

future,
(see see Earnings, loss of future)

past 6.13–6.16

example cases 6.84–6.98

expert help, range 6.1, 6.6

fatal accidents,
(see see Fatal accident)

funding cases 17.48

future loss 6.9, 6.33 et seq

DIY activities, value of 6.57

disadvantage in the labour market 6.55

earnings,
(see see Earnings, loss of future)

expenses/adaptations 6.58

general 6.12, 6.19, 6.59, 6.61, 6.73

information for claim 6.9–6.11

accountant's report, drafting introductory section 6.11

list of details needed 6.10

interest 6.59, 14.3, 14.12, 14.16, 14.17

categories of damages 14.16

Personal injuries compensation – contd

interest – contd

claim required 6.59

rate 14.16, 14.17

recoverable benefits 14.17

interim award 6.64

loss to date of trial (past loss) 6.9, 6.12

benefits 6.17

deductions for residual earnings, benefits received etc 6.26–6.31

employee 6.13, 6.17

income 6.13–6.16

medical and other expenses 6.19–6.25

non-deductible receipts 6.32

self-employed person 6.14–6.16

special damages 6.12

taxation, notional deduction for 6.18

lump sum 6.35, 6.38, 6.63, 6.67

periodical payments, or, appropriateness 6.71, 6.72

negotiations 6.60, 6.61

non-pecuniary loss

guidelines on assessment of damages 6.73

loss of amenity 6.3, 6.4, 6.73

loss of job satisfaction 6.56

pain and suffering 6.3, 6.4, 6.73

single sum award 6.73

overview 6.2–6.9

partner 6.14, 6.47

pecuniary loss (loss of earnings and expenses) 6.3, 6.7–6.9, 6.10 et seq

specialist accountant for 6.4, 6.11

pension rights and benefits,
(see see Pension)

periodical payments 6.9, 6.63, 6.66–6.72

court power, and limits on 6.68

factors for court 6.69

inflation, impact of 6.71, 6.72

retail prices index 6.71, 6.72

variation of order 6.70

provisional award 6.65

special damages 6.12, 6.19, 6.57, 6.59

structured settlement 6.9, 6.66

mutual agreement required 6.68

summary 6.99

Plant

'betterment' issues 1.30–1.34

damage to 2.45–2.48

Police

interview procedures, commercial fraud case 9.45–9.46

Practice notes 20.1 et seq

administrative matters 20.25–20.57

fees,
(see see Fees)

Practice notes – contd

administrative matters – contd

limitation of liability,
(see see Liability limitation agreement/clause)

timetable, outline 20.25–20.27

new case, for 20.3–20.24

circumstances for 20.3–20.5

conflict of interest, assurance that none,
(see see Conflict of interest)

instructions and terms of reference 20.20–20.23, Apps J, K

team, choice of 20.24

organisation important 20.2

report,
(see see Expert accountant's report)

Pre-action protocols 17.25, 19.5

Pre-nuptial agreement 7.42–7.47

Private company,

(see see Company, limited; Shares)

Private equity funds

valuation in matrimonial case,
(see see Divorce)

Privilege 17.37

expert's report 20.56, 20.57

Professional negligence (accountant) 8.1 et seq

auditor liability limitation agreement 8.2, 8.32, 8.75

background 8.1, 8.2

bank, claim by 8.67

breach of duty of care 8.33–8.37, 8.46

Caparo 8.2, 8.12, 8.13–8.18

body of shareholders, duty owed to 8.74

subsequent developments 8.19–8.32

causation chain 8.40

cases 8.41–8.43, 8.49

claimant to show causal link 8.44

contributory negligence 8.45

event breaking 8.47

loss to derive from negligent act 8.40

management fault, effect of 8.45, 8.48

characteristics of professional work 8.3

claim types 8.5, 8.6

competence and skill required 8.4, 8.33, 8.34, 8.79

general standards of competence 8.36, 8.37

damages 8.47, 8.50

fresh audit, cost of 8.55

lost investment, for 8.51

misuse of property by employees left undiscovered 8.54

moneys wrongly paid out 8.53

over-payment, for 8.52

Professional negligence (accountant) – contd

disclosure, possible effect of 8.70

duty of care 8.8–8.32

developing case law 8.31, 8.74

subsidiaries 8.20, 8.21

third party, and 8.17, 8.18, 8.19, 8.31

to whom owed 8.12, 8.14, 8.19, 8.74

essential constituents of claim 8.7 et seq

expert accountant in claim for 8.76, 8.77

area of expertise, importance of 8.78

claimant's perspective on 8.56–8.61, 8.69

defendant's perspective on 8.62–8.68

facts of case, turns on 8.79

foreseeable damage 8.38–8.45, 8.69

causation,
(see see 'causation chain' above)

foreseeability 8.39

letter of claim 8.72

misrepresentation by employee, effect of 8.48

pre-action protocol 8.68, 8.70, 8.73

settlement aim 8.73

quantification of damage 8.46–8.50

reasonable practice, defence of 8.34

time-limit for investigation of allegations 8.73

Public funding 17.51, 20.34–20.36

Public inquiry 16.39–16.43

accountant's role 16.41–16.43

chairman 16.40

examples of recent 16.39

members 16.40

regulation 16.39

Purchase price

sale of company, and breach of warranty damages 3.36–3.44

R

Records

accountant expert keeping 20.38

solicitor keeping 17.52

Regulatory work 16.1 et seq

accountant's involvement, overview 16.53

ad hoc inquiries, accountant's involvement 16.33–16.38

examples 16.33, 16.34

independence 16.36

witness, and 16.37, 16.38

company inspections,
(see see Company investigations)

Regulatory work – contd

disciplinary proceedings,
(see see Disciplinary investigations)

disclosure of information 16.48

accountant's role where error or fraud 16.49, 16.50

fees, terms of reference etc 16.20, 16.52, App K

general trend to wider regulation 16.48

indemnity 16.20, 16.52

public inquiry,
(see see Public inquiry)

time commitment/availability 16.20

tribunal proceedings,
(see see Disciplinary investigations)

various 16.48–16.50

Reinsurance contract 11.1

accountant's role 11.1–11.3, 11.14, 11.37

accuracy etc check on accounting information 11.21

central accounting systems, thorough knowledge of 11.31

compliance with contract 11.19, 11.20

data collection/interpretation 11.29, 11.30

interpretation contract 11.15–11.17

main tasks, list 11.14

misrepresentation/negligence, advising whether has occurred 11.34–11.36

reviewing placing files provided at contract signing 11.18

sampling 11.32

scheduling process 11.28

valuable in resolving dispute if knowledge of industry 11.37

warranty observation, check on 11.33

arbitration of dispute 11.28, 11.32

broker or intermediary 11.8, 11.10–11.12, 11.36

documentation, review by accountant 11.18, 11.33

error or negligence 11.36

treaty reinsurance, in 11.15, 11.18

cause of disputes 11.8

long tail liability clause 11.11

net accounting practice 11.12

profitability and the 'insurance cycle' 11.9, 11.10, 11.34

circumstances for 11.5

currency choice for settlement 11.13

examples of disputes 11.22

allocation of claims to treaty 11.27

class of business confusion 11.23, 11.24

Reinsurance contract – contd

examples of disputes – contd

period of cover, as to 11.25

reallocation of risks by ceding company 11.26

facultative reinsurance 11.6

overview 11.4–11.7

refusal to pay under 11.8

'run-off' 11.7

treaty reinsurance 11.6, 11.10, 11.14

excess of loss 11.6, 11.7

example dispute 11.26, 11.27

non-proportional 11.6

proportional 11.6, 11.7

stop loss 11.6

volumes of transactions involved 11.28

warranty 11.33

Remoteness

cause, as to 1.38, 1.39

extent of protection, as to 1.40–1.45

Report,

(see see Expert accountant's report)

Reputation, damage to 2.49, 2.50, 10.9

Restitutionary damages 1.35

Retirement pension, state 6.32

Royalties,

(see see Intellectual property)

S

Sale and purchase agreement

'locked box' principle 3.3

purchase price adjustment and completion accounts 3.32

revision of consideration on settlement and CGT 15.26

warranty

breach of, damages 3.37

leakage provisions 3.3

see also Warranty

Security for costs 13.1 et seq

accountant's role 13.18, 13.19

report to court, form of 13.20, 17.53

background 13.1–13.3

company in liquidation 13.6

conditions for order 13.4, 13.5

counterclaim by defendant 13.7

discretionary 13.9

evidence 13.20, 17.53

example 13.10–13.12

financial evidence 13.3, 13.14–13.19

accountant's review of 13.18

obtaining and difficulties in 13.15–13.17

Security for costs – contd

good grounds needed 13.3, 13.6

critical approach by judge 13.21

reasonable and realistic 13.13

information obtained, general use of 13.22

methods for giving 13.8

safeguard for cost recovery, as 13.4

Self-employed

personal injuries claim

loss of earnings 6.14–6.16

pension loss assessment 6.53

Senior Courts of England and Wales

Supreme Court becoming 17.6

Serious fraud

see also Fraud, commercial

accountant appointed to investigate, delegated powers 16.8

Serious Fraud Office 9.24, 9.29, 9.47

company investigation, involvement in 16.21, 16.22

Settlement

CGT aspects 15.22–15.25

grossing up for during negotiations 15.25

sale and purchase contract, issues on revision of consideration 15.26

compromise or settlement in High Court 17.46–17.48

interest on damages, taxation in out of court settlement 15.47

matrimonial case, financial settlement in,
(see see Divorce)

Part 36 offer 17.50

private, accountant assisting with 19.59–19.68,: (see also see also Alternative dispute resolution)

structured, personal injuries claim 6.9, 6.66, 6.68

taxation of damages, implications for 15.47, 15.50

trust assets, issues on divorce 7.75–7.80

Shareholder(s)

Caparo, and duty owed by accountant to 8.14, 8.19, 8.74

induced to vote for dividends 8.53

buy-back 7.94

dividends 7.94

divorce and private family company,
(see see Divorce)

shareholder employee, future 'earnings' for personal injuries claim,
(see see Earnings, loss of future)

Shares – contd

valuation

breach of warranty case 3.36

business valuation distinguished 4.14–4.18

carried interest, private equity funds 7.66–7.74

circumstances for 4.4

dividend yield basis 4.30–4.32

'equity value' 4.14, 4.22, 4.58

estate and trust cases 4.7

factors affecting App C

multiples and market capitalisation, and 4.59, 4.60, App C

private company, for ancillary relief 7.48–7.51

Solicitor

fee 17.48

instructions to accountant 20.20–20.23

example letter App J

proof of evidence, preparation of 18.22

records, costs for 17.52

role 17.12, 17.13, 17.18

company investigation, in 16.10, 16.18

disciplinary tribunal, in 16.25

fusing of professions, debate as to 17.20

solicitor advocates 17.19

team member, approving accountant's choice of 20.24

Special damages 6.12, 6.19, 6.57, 6.59

Statements of case 17.28–17.30

arbitration, in 19.28

Statement of truth 17.31

Success fee 17.48

Supreme Court 17.6

T

Taxation

capital gains,
(see see Capital gains tax)

corporation tax 15.17, 15.18, 15.31

damages 1.60, 15.1 et seq

arrears of interest 15.42

CGT,
(see see Capital gains tax)

court approach 1.61, 1.62

deductibility issues 15.36–15.41, 15.45

foreign currency, award in 15.49

income or capital 15.10

information gathering 15.6

interest on, treatment of 15.14–15.16, 15.43, 15.44

Taxation – contd

damages – contd

issues for expert accountant 15.4–15.7

loss of income, reduction for tax 15.29–15.33,: (see also see also Gourley principle)

payee, position of 15.36–15.41, 15.45

payment into court 15.48

rate of tax 1.63, 1.64

settlement out of court 15.47, 15.50

tax period 15.34, 15.35

divorce, implications in 7.81–7.84

Gourley principle,
(see see Gourley principle)

income tax 15.8–15.10

interest on damages, on 15.14

inheritance tax 15.27

VAT 15.28

Terms of reference 20.20–20.23

letter of instruction 20.22, App K

written record as to development of 20.22

Timetable

accountant, outline for 20.25–20.27

court setting out 5–6

disclosure, for 17.34, 17.39

Tort

damages in,
(see see Damages)

information technology claim,
(see see Information technology (it))

misrepresentation, deceit 1.20

Transcripts 18.41–18.44

Trial,

(see see Cross-examination; High Court)

Tribunal, disciplinary,

(see see Disciplinary investigations)

Trust assets

divorce, and 7.75–7.80

shares 4.7

U

United States of America

commercial fraud legislation 9.30

Foreign Corrupt Practices Act 1977, and accountants' role 9.30, 9.31

Sarbanes Oxley Act 2002 9.32–9.34, 20.15

Securities Exchange Act 1934 9.35, 9.36

reinsurance contract

dollar as key currency for settlement 11.13

long tail liability clause 11.11

Unliquidated damages 14.36

V

Valuation

construction contract, issues in,
(see see Construction contract claim)

Valuation of business 4.1 et seq, App C

assets approach 4.22, 4.23, 4.34–4.55

choice of approach 4.43–4.55

cost approach 4.35, 4.36

'going concern value' 4.39

liquidation basis 4.41

market capitalisation, and 4.57, 4.58

replacement cost 4.42

value approach 4.35, 4.37, 4.38

assumptions, use of 4.74–4.78

scrutiny by court 4.78

business entity 4.19 et seq

'enterprise value' 4.14, 4.58

equity valuation distinguished, and issues for expert 4.14–4.18, 4.58

see also 'net assets' below

circumstances where needed and expert's role 4.2–4.11

valuation theory, importance of 4.12, 4.13

compensatory damages 4.3

compulsory purchase 4.6

director's breach of duty 4.10

discounted cash flow approach 4.21, 4.25–4.29, App C

court recognition of DFC 4.29

discounted earnings variation App C

dividend yield 4.21, 4.30–4.32

divorce cases 4.8

equity value 4.14, 4.22, 4.58

circumstances for share valuation 4.4

expropriation,
(see see Expropriation of assets)

income approach 4.21, 4.25–4.29, App C

information gathering prior to 4.61–4.63

lost opportunity through foul play etc 4.5, 4.64–4.73

measure of value lost, methods 4.71–4.73

role of expert in 4.68

market approach 4.21, 4.24, App C

comparable company 4.54, 4.58, 4.62, App C

maintainable earnings, assessment of 4.24

market transaction method 4.62, App C

Valuation of business – contd

methods 4.19–4.33

circumstances of case 4.19, 4.20

types 4.21, 4.22

negligence of valuer 4.11, 4.79–4.87

advice cases 4.81, 4.82, 4.86

contributory negligence 4.85

fall in property market, cases on 4.80, 4.86

net tangible assets,
(see see 'assets approach' above)

opinion of expert, independence and other prerequisites 4.89

past performance, accounting policies for adjustments App C

share valuation 4.4

estate and trust cases 4.7

see also Shares

special purpose/specialised industries 4.33

Value added tax 15.28

Vendor due diligence 3.2

W

Warranty

breach 3.4

damages,
(see see below)

hindsight, issue of 3.13–3.16

liability and quantum, facets of 3.6, 3.12

proof 3.8–3.13

reinsurance contract 11.33

collateral to contract, status as 3.4

damages 3.33–3.45

accountant's role 3.33, 3.34, 3.42, 3.45

calculation method 3.35

double counting 3.45

general rule 3.36

Warranty – contd

damages – contd

sale of company, market value 3.37, 3.38

sale of company, value as was 3.39–3.44

de minimis clause, and 3.11, 3.12

debts, collectability warranty 3.28–3.30

enhanced, use of 3.3

financial 3.5, 3.6

accounting policy consistency in warranty breach 3.22–3.24

advice before entering agreement including, need for 3.46

completion of accounts on sale 3.31, 3.32

consistency concept 3.17–3.24

events after reporting period, 'adjusting' and 'non-adjusting' 3.14

examples 3.8

exceptional factors 3.8, 3.46

'true and fair view' breach 3.9, 3.10, 3.14–3.16

inventory provisions, examples 3.26, 3.27

materiality 3.9, 3.10

use, background to 3.1–3.3

Witness

company investigation, in 16.16–16.18

cross-examination of expert
(see see Cross-examination)

expert,
(see see Expert witness)

types of 4–5

Wrongful death

interest on damages for personal injury or,
(see see Interest)

Wrongful dismissal

damages 15.11–15.14

payment into court 15.12, 15.13