Arbitration
With an increasing number of disputes being resolved outside the courtroom,
one should consider the role accountants can play in alternative dispute
resolution (ADR).
Bringing an accountant into the process early can often save time and
professional fees and may reduce financial burden. A party in the
preliminary stages of a business dissolution, for example, may want to
discuss property valuation issues and the tax consequences of various
settlement options with an accountant to gain a realistic understanding
of the situation.
If the parties cannot reach a settlement, a contract or other rules may
require the matter to be submitted to ADR. Even if ADR is not required,
the parties may consider arbitration or mediation as a potentially
faster and cheaper alternative to litigation in court.
An increasing number of authorities are including accountants on the
panel of arbitrators in commercial cases and cases involving personal
damages. The accountant's special expertise offers a number of advantages
in this repect.
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