Accounting Arbitrations
In a world of sophisticated financial transactions and global merger and acquisition activity, a substantial portion of the value of a transaction is dependant upon how the parties account
for assets, liabilities and other transaction at closing. Oftentimes the contract will call for this accounting to be performed "in accordance with Generally Accepted Accounting Principles
consistently applied." Disagreements typically surface over exactly what this phrase means. The parties then turn to an experienced accountant to serve as the neutral arbitrator in making
these determinations.
Our professionals have served as independent arbitrators and accounting neutrals in a number of purchase price disputes. They have extensive experience in accounting and financial reporting,
performing due diligence work for buyers and sellers, assisting buyers and sellers in developing and presenting their cases in purchase price dispute matters, and participating in arbitration
proceedings. This knowledge and experience allows us to conduct an efficient and effective arbitration process.
We have served as arbitrators and accounting neutrals in a variety of industries with disputes ranging from $1 million to $60 million. We have opined on issues such as:
| - Accounts receivable reserves and allowances |
- Accounts receivable cutoff |
| - Inventory reserves and allowances |
- Inventory cutoff |
| - Inventory obsolescence |
- Inventory book-to-physical adjustments |
| - Inventory consignment |
- LIFO inventory adjustments |
| - Capital asset purchases |
- Intercompany transactions |
| - Income tax allocations |
- International accounting transactions |
| - Accounts payable cutoff |
- Adequacy of liability accruals |
| - Losses on purchase commitments |
- Consistency of accounting treatments |
