Why is it that one income loss report can say an insurance loss
claim is worth a million dollars and another one can say it is
This is a question we hear often.
Let's first assume both sides have access to the exact same
information. But what sometimes happens is that the way the
information is provided is not telling the whole story. For
example, some information that should have been available was not
produced. On the other hand, sometimes it seems that there is more
information available than should normally have existed, which may
indicate some manipulation of documentation to support a claim.
Income loss reports can be prepared by economists, actuaries or
The Valuations Forensics Litigation group at Crowe Soberman
consists of trained forensic accountants, whose job is to notice
when information is missing or not telling the real story, and make
sure we don't develop calculations based on unreliable
documents. Our calculations are always based on reasonable
assumptions that are clearly supported with thorough analysis and
research, using both financial analysis and an investigative
mindset. As experts who are qualified to testify in Court, we owe a
duty to the Courts to be impartial. We also owe it to our clients
— whether plaintiff or defence — to produce reports
that are going to be accepted as objective and independent.
That's why we never rely on questionable information or ignore
information that would be seen as creating bias in our results.
If opposing experts have equal access to information, yet their
reports state a million dollar loss and a zero loss, at least one
of those reports likely includes some level of bias, insupportable
assumptions or a failure to consider the big picture as well as the
finer details. At Crowe Soberman we never produce a report
calculating an income loss that is unsupportable, nor do we state
that the income loss is worth nothing if there is clear evidence
that there must have been a financial impact. We understand that
both plaintiffs and defendants want to get back to living their
lives. So it's important to our team that we help resolve the
problem, not create a new one by getting in the way of reaching a
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Over the past year, we have watched the Canadian dollar drop relative to its U.S. counterpoint impacting Canadian businesses. U.S. goods and services are now more expensive, U.S. sales make a premium and errors when recording foreign exchange transactions can cost you more money.
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