3Ed_CCH_Forensic_Investigative_Accounting_Ch10

Chapter 10 forensic and investigative accounting 5

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Unformatted text preview: Chapter 10 Forensic and Investigative Accounting 5 Damages Calculation Approaches The out-of-pocket loss refers to the difference between the actual value received and the actual value conveyed. The plaintiff can recover nothing beyond his or her investment. Under the benefit-of-the-bargain theory (or expectations remedy), the damages include not only the money invested but also other expenses such as increased costs, lost profits, and decreased value of the investment. Chapter 10 Forensic and Investigative Accounting 6 Damages Calculation Example Debra (defendant) sells Paula (plaintiff) an asset with an alleged value of $2 million for $1.8 million. However, the asset really had a market value of only $1.6 million...
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This note was uploaded on 03/03/2010 for the course ACCT 423 taught by Professor Ryan during the Winter '10 term at UCLA.

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