AICPA Article Discusses Ex Ante Versus Ex Post Damages Calculations
The American Institute of CPAs (AICPA) publishes a newsletter for forensic accounting and business valuation professionals called the FVS Consulting Digest. This publication is described as “a bi-monthly member newsletter that will offer information and guidance on technical and practice management topics, discuss noteworthy current case law, and provide valuable FVS Section updates.”
Recently, an article appeared in the FVS Consulting Digest by Eric Holzman titled Battle of the Exes: Understanding the Effect of the Ex Ante and Ex Post Approaches on Damages Calculations. The article chimes in on the active debate about the use of ex ante versus ex post accounting techniques when measuring lost profits and economic damages. While the author does not indicate a preference for one approach over another, he does provide a brief summary of the differences between the ex ante and ex post approaches and he provides case examples for computing damages using the two methodologies.
As a recent review of the FVS Consulting Digest article suggests, Battle of the Exes: Understanding the Effect of the Ex Ante and Ex Post Approaches on Damages Calculations may be more appropriate for professionals who are inexperienced with calculating business damages. The anonymous expert witness commented:
The article is quite basic and conclusory in addressing the concepts of ex ante v. ex post damages. Only highlights of the theoretical differences are provided and most of the article column-inches are devoted to a couple of narrative and numerical examples. The article may be useful to the inexperienced professional with respect to computing business damages but provides no analysis and discussion useful to the more experienced practitioner.
I’m interested to hear if you agree with this review of Battle of the Exes: Understanding the Effect of the Ex Ante and Ex Post Approaches on Damages Calculations. Post your opinion of the article on its profile page to let me know what you think!