Commercial Disputes
Understanding the financial substance of a disagreement.
The financial context
Transactions, agreements and accounting records can describe different parts of the same dispute. An examination may bring those records together, test relevant calculations and identify what the available evidence can support.
Questions that shape the review
Which calculation is actually disputed?
Compare the relevant dates, definitions, inputs and adjustments before considering the difference in results.
Which records support each position?
Identify the sources, missing periods and assumptions that could affect the comparison.
From information to an explanation
The work should connect the source material to the question being considered. Differences in definitions, periods or assumptions need to be made visible, together with the effect of any missing records.
The resulting explanation should distinguish what is documented, what depends on judgement and what remains uncertain. Its form and level of detail depend on the agreed purpose.
A question of suitability
The practice’s relevant experience, independence and the information available must be confirmed before any engagement. The purpose, scope and reporting requirements are agreed before analysis begins.
Discuss the financial question.
Start with the background, the relevant period and what you need to understand.
Discuss an enquiry