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Chicago International Dispute Resolution Association
Resolving Complex Financial and Accounting Issues in International Disputes
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Case Example #2: Neutral Accountant in International Arbitration - French Pension Plan Liability |
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Post M&A Dispute Surrounding a Retirement Plan Liability |
| for a French Production Facility Recorded on the Closing | ||
| Balance Sheet: | ||
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Discrepancies between Asset Purchase Agreement and | |
| French union contracts | ||
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Comparison of the assumptions used by each parties' | |
| actuary | ||
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Does a change in an actuarial assumption (i.e., longevity / | |
| number of employees / etc.) represent GAAP inconsistently | ||
| applied or simply a correction of an error? Does GAAP | ||
| incorrectly applied consistently trump a correction of an | ||
| error under GAAP? | ||
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Provided Final and Binding Award after Determining | |
| Appropriate Inputs in the Actuarial Model: | ||
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Determined that a correction of an error does not | |
| equate to GAAP inconsistently applied |
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Peter V. Baugher,
President
One South Wacker Drive, Suite 2800, Chicago, IL 60606 USA
312-409-1373 (Telephone), 312-701-9335 (Facsimile),