Accounting advice in litigation support role

Background

FRP was instructed by a law firm that was due to file a defence on behalf of its client in four days’ time. One of the claims to be defended related to statements made in a press release in respect of capitalised assets and share capital in a set of financial statements.

Action

FRP was engaged on an urgent basis in a litigation support role. We were initially asked to consider a number of accounting questions on a theoretical basis to assist the legal team in drafting its client’s defence. However, on learning more about the specific facts of the case and reviewing the documents disclosed to us, we were able to identify an additional issue relating to consolidated accounts that had not previously been considered.

Outcome

We provided accounting advice within three days of first being approached, which enabled the law firm to defend its client’s position in a robust manner that correctly reflected generally accepted accounting principles.