Bankruptcy and Financial Distress Litigation

Forensic Accounting and Financial Analysis

Forensic Accounting and Financial Analysis

The fields of economics and accounting are closely entwined and, in the area of securities, they frequently intersect. In some situations (such as financial statement analysis or valuations), an accountant can provide insight into how data should be correctly interpreted, including how to make adjustments that make data useful (or more useful) for economic analyses. In addition, some laws and regulatory bodies require certain analyses to be completed in accordance with specific accounting rules and guidelines.
 
Many of NERA's economists are also Certified Public Accountants, with training and experience in analyzing financial statements and financial data prepared in accordance with Generally Accepted Accounting Principles (GAAP) and other accounting standards, including International Financial Reporting Standards. NERA's accounting experts combine statistical and econometric expertise with an in-depth understanding of the nature and possible flaws in the underlying financial data. We are frequently asked to provide consulting or expert testimony. Our experts have extensive experience with the standard-setting process for GAAP and determining which components of GAAP apply in ambiguous circumstances. Further, our experts can recognize situations where GAAP is unclear, and can articulate and explain different allowable accounting treatments.

NERA's accounting experts are also uniquely positioned to evaluate the economic substance behind reported financial results while being aware of the actual numerous transactions that underlie the numbers. NERA has applied this specialized knowledge in numerous engagements involving accounting issues including:

  • Analyzing the value of securities tied to subprime lending, including reserves for losses on the balance sheet of the originator.
  • Examining allegations of accounting fraud in securities class actions.
  • Evaluating economically complex transactions or entities.
  • Determining the economic effect of practices such as options backdating.
  • Analyzing the economics of mutual funds, and data in cases of alleged mutual fund fraud.
  • Examining the economic effect of accounting assumptions and estimates.

Depending on the nature of the case and their assignment, our accounting experts can work in concert with our economists, relying on some of the same analyses as our damages experts, or they may be set up to work separately in order to insulate their work.

Name Title Location Phone Email
Antoinette (Toni) Pincott Managing Director London +44 20 7659 8576 toni.pincott@nera.com
Dr. Jordan Milev Associate Director New York City +1 212 345 5516 jordan.milev@nera.com
Yuko Saito Associate Director New York City
Tokyo
+1 212 345 1963
+81 3 3500 3378
yuko.saito@nera.com
Dr. Airat Chanyshev Senior Consultant New York City +1 212 345 7336 airat.chanyshev@nera.com
Dr. Jerry Arnold Affiliated Academic Los Angeles +1 310 570 3982 JArnold@marshall.usc.edu
Dr. Paul Wertheim Affiliated Academic Austin
Toronto
Los Angeles
+ 1 512 383 4800
+1 416 868 7314
+1 325 674 2071
paul.wertheim.affiliate@nera.com
Title Type Author
Not All MBS Settlements Are Equal White Paper By Faten Sabry, Sungi Lee, and Linh Nguyen
SEC Settlements Trends: 1Q09 Update Study
Financial Disclosure and SFAS 157: Seeking Transparency in a Perfect Storm Published Article By Dr. Sharon Brown-Hruska with former NERA Vice President Shuchi Satwah
The Subprime Meltdown: Understanding Accounting-Related Allegations Working Paper By Dr. Airat Chanyshev et al.
Options Backdating: Accounting, Tax, and Economics Working Paper By Dr. Patrick Conroy et al.
Grasping the Value of Intangible Assets: An Economic Approach to SFAS Nos. 141 and 14... Published Article By Bryan Ray et al