Tag Archives: Forensic Accounting

The Generally Accepted Accounting Principles (“GAAP”) Sometimes Don’t Fit the Glove – Understanding Business Interruption Claims, Part 98

“If the gloves don’t fit, you must acquit” – Johnny Cochran Many forensic accountants have noted that the Generally Accepted Accounting Principles (“GAPP”) focus on business valuation formulas that are more suited for commercial transactions than for determining the amount of business income loss. Businesses also have different styles of bookkeeping, which can create challenges … Continue Reading

Too Much is Never Enough – Understanding Business Interruption Claims, Part 95

Business income claims are not very emotional or passionate. Jurors will not get to weigh the credibility of wild and intriguing witnesses or examine the conclusions of a forensic medical examiner who will explain how a person died. These cases are dry and forensic accountants can only be so entertaining. Notwithstanding the dull topic, the … Continue Reading

Don’t Forget to Submit Your Accountant’s Bill – Understanding Business Interruption Claims, Part 72

Insurance carriers are quick to deny payment for services rendered by accountants or consultants in connection with the presentation of a business income claim. The number one reason given not to pay is that there is no specific language in the policy obligating an insurer to pay for such expenses. In a previous post, Passing … Continue Reading

Oil Spill Accounting and Damages: The Team Approach to Determine Business Interruption Claims

The proper determination of more significant oil spill commercial lost profit and earning capacity claims must be approached very similarly to business interruption catastrophe claims. The best approach for larger or more complex claims is through a team of specialists. A business client can only be properly represented and fully indemnified through a collegial debate … Continue Reading

Broken Tile Claims, Oil Spill Issues and Internet Problems

I receive a fair amount of private emails regarding certain posts. Yesterday, I received about fifty saying that this Blog was “down.” Thanks. This blog is hosted by LexBlog and this was their explanation: The issue, arising out of the software interfacing with our cloud server environment was identified, and repaired. We do not expect any … Continue Reading

Accountants and Business Interruption Experts Will Play an Important Role Recovering BP Oil Spill Income Loss Claims

The tragedy of loss of human life and damage to the environment when discussing the BP Oil Spill cannot be overstated. The important role that accountants and business interruption experts will play helping prove financial loss cannot be overstated either. Experienced professionals like Bob Glasser, noted in yesterday’s Are Lawyers Pandering for BP Oil Spill Clients … Continue Reading

The Forensic Accountant’s Role In Business Interruption And Business Income Claims

(*Chip Merlin’s Note–Bruce D. Smith is a certified public accountant and certified fraud examiner, whose firm’s focus since its founding in 1992, has been forensic and investigative accounting for the insurance industry. He has been involved in claims in both catastrophic and non-catastrophic environments and has been engaged by both insurers and policyholder and their … Continue Reading