Posts Tagged ‘damage calculations’

Calculating Damages: What is Reasonable Certainty?

chartmagnifyOne of the common issues raised when an expert calculates damages is “reasonable certainty.” It is not uncommon for opposing counsel to suggest that the expert’s calculated damages are speculative.

The calculation of damages necessarily requires estimates and assumptions. Something has happened, and a company or individual is claiming that there are lost profits because of it. We can never know with complete certainty what revenue or profits would have been if that incident or action had not taken place. Mathematical precision is not possible. Thus, the expert must make certain estimates in order to calculate damages.

Expert Fraud Investigation
Divorce Investigations
CPA's Handbook of Fraud and Commercial Crime Prevention
Essentials of Corporate Fraud
© 2013 Sequence Inc. Forensic Accounting. All rights reserved. View our privacy policy here.