Jones Day - Services - Accounting & GAAP Issues

In 2003 and 2004, more than two-thirds of the securities fraud class actions filed alleged misrepresentations in financial documents, the most common allegation in these cases. These actions are often filed immediately following disclosure of an accounting-based impact upon financial results, and issues related to a company's accounting practices and whether those practices comply with generally accepted accounting practices (GAAP) are at the heart of such cases. The specific accounting issues vary, but they include revenue recognition, overstatement of accounts receivable, overstatement of assets, and understatement of liabilities. Understanding the accounting concepts that underlie these allegations, the application of GAAP to the claim, and public company accounting principles can be the key to a successful motion to dismiss, summary judgment argument, or Daubert challenge to plaintiff's accounting and damages experts.

Jones Day lawyers have extensive experience in getting to the bottom of these accounting issues, working closely with both the client's in-house accountants and public company auditors as well as outside accounting experts. The ability to reduce sophisticated accounting principles to understandable concepts can make the difference in obtaining a successful resolution of the case. Over the years, members of Jones Day's Securities & Corporate Governance Litigation team have clearly demonstrated that ability.

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Lawyers Staff Overview Experience Professionals Publications Main Practice Securities and Shareholder Litigation & SEC Enforcement	In 2003 and 2004, more than two-thirds of the securities fraud class actions filed alleged misrepresentations in financial documents, the most common allegation in these cases. These actions are often filed immediately following disclosure of an accounting-based impact upon financial results, and issues related to a company's accounting practices and whether those practices comply with generally accepted accounting practices (GAAP) are at the heart of such cases. The specific accounting issues vary, but they include revenue recognition, overstatement of accounts receivable, overstatement of assets, and understatement of liabilities. Understanding the accounting concepts that underlie these allegations, the application of GAAP to the claim, and public company accounting principles can be the key to a successful motion to dismiss, summary judgment argument, or Daubert challenge to plaintiff's accounting and damages experts. Jones Day lawyers have extensive experience in getting to the bottom of these accounting issues, working closely with both the client's in-house accountants and public company auditors as well as outside accounting experts. The ability to reduce sophisticated accounting principles to understandable concepts can make the difference in obtaining a successful resolution of the case. Over the years, members of Jones Day's Securities & Corporate Governance Litigation team have clearly demonstrated that ability.