Today, the American Institute of Certified Public Accountants (AICPA) announced the publication of the Calculating Lost Profits practice aid. Hemming Morse partners Greg Regan and Chris Tregillis were two of the five authors. This new publication provides extensive guidance to professionals who perform lost profits calculations. A key feature of the practice aid is a comprehensive case study that the authors developed to illustrate concepts integral to lost profits calculations, including methods to model lost sales and avoided costs. The authors augment the practice aid with numerous case law citations reflecting real-world implementations. Additionally, the authors present in-depth analyses related to legal principles encountered when calculating lost profits, tax considerations, and prejudgment interest. Prior to publication, the practice aid was peer-reviewed by numerous other experts in the field.
The publication of the Calculating Lost Profits practice aid extends Hemming Morse’s long-standing track record of developing guidance for forensic and valuation services professionals. Our professionals have also served as authors for other recently issued AICPA practice aids, including Attaining Reasonable Certainty in Economic Damage Calculations: Revenues, Costs, and Best Evidence, as well as Communications in Litigation and Dispute Services.
To purchase this practice aid, please visit the AICPA’s website here: https://www.aicpa.org/interestareas/forensicandvaluation/resources/fvs-online-professional-library.html