How complex commercial disputes can benefit from engaging experts on the fundamentals of Fair Value accounting
The misuse of Fair Value (sometimes called Mark-to-Market) accounting has been at the heart of several high-value accounting scandals. Perhaps the most infamous instance was exposed in the collapse of Enron in 2001, where extensive misapplication of Fair Value fraudulently inflated reported profits.
More recent history, such as the near collapse of Noble Group, shows that the problem has not gone away. In today’s difficult Covid business climate and the uncertain economic recovery to follow, commercial disputes are likely to force more of such cases to light. Counsel may need to call upon experts in Fair Value accounting standards to back up legal argumentation over appropriate valuation techniques.
In this article with The Lawyer, FRA Partner Rob Mason and Director Gordon MacLeod discuss how complex commercial disputes can benefit from engaging experts on the fundamentals of Fair Value accounting.