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What’s It Worth? – 29 May 2013

Member: Nifa

The BBC recently reported that campaigners opposed to the high-speed rail line through the Midlands are seeking legal advice on taking the Government to court; a move which acts as a reminder that forensic accountants can not only be used in high-profile divorces but also to provide expert accountancy evidence in compulsory compensation disputes. Many forensic accountants are experts in the fields of business valuation issues or financial loss to individuals, so anyone finding themselves in such a situation should look at engaging a professional firm.

A forensic accountant’s understanding of compulsory purchase compensation will help ensure the award of a fair level of compensation and will take into account betterment, worsenment and equivalence principles, as well as mitigation of losses. Moreover, as independent experts, forensic accountants will be able to focus on negotiation and advice without being caught up in the emotive issues experienced by the householder or business owner.

In the case of the latter, a forensic accountant will be experienced in assessing compensation claims for disturbance costs and any loss of profits claim can also include compensation due on extinguishment of a business. A forensic accountant will work with other experts to review and analyse all sides of the claim and will also be able to give evidence or represent the client in tribunals or courts, which can be very intimidating settings for the layman.

In addition, because they have experience of other claims and have dealt with all the authorities and bodies likely to be involved, the forensic accountants will be able to give their client a realistic estimate of the likely outcome from the start, which can save time and allows the client to focus on the future.



Author: Roger Isaacs, 29 May 2013

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