Derivatives Forensic Accounting Services
Our derivatives accounting experts work with law firms and government agencies to analyze the accounting provisions within governing documents for derivative securities.
Accounting Consultations for Derivatives Litigation
Derivatives litigation frequently results from unexpected financial losses, inadequate documentation, disagreement over payment timing or prioritization, or failure to meet overcollateralization tests (OC test or borrowing base requirements). Our litigation support services include:
- Due diligence review. If you or your client relied on the advice of an investment manager or third party (i.e., accounting firm, auditor, or ratings agency) as part of your derivatives investment program, our derivatives accountants will review the documentation that was supplied to you for accuracy, clarity, and compliance considerations.
- Performance representations. Investment risk profiles may be poorly understood by the seller or the buyer, improperly documented, and/or inaccurately rated. Our derivatives accountants can evaluate risk profiles in shareholder suits and other derivatives litigation.
- Financial instrument analysis. We can assist you with many types of derivatives securities, including but not limited to:
- Commodity derivatives
- Credit derivatives, including credit default swaps (CDS)
- Equity contracts and derivatives
- Exotic derivatives (e.g., floating rate returns created from fixed rate debt)
- Foreign exchange derivatives and commodity contracts
- Forwards
- Futures and other options
- Interest rate derivatives
- Over-the-counter (OTC) derivatives
- Private placements
- Repurchase agreements
- Swaps and swaptions
- Warrants
Contact us to discuss your derivatives litigation needs.
Services for Current Derivatives Transactions
Derivative securities are, by their nature, very complex financial instruments. Our derivatives accountants are available to advise your financial or legal team on the terms and provisions that influence interest rates, cash flow, and asset valuation, including:
- Risk identification. Based on your financial planning goals, we can help you identify relevant derivatives accounting provisions for interest rate risk, borrowing costs, asset valuation, and cash flow.
- Derivatives structuring. Funds of funds, master feeder funds, credit default swaps (CDS), and interest rate swaps, are just a few of the many ways that derivatives can be structured. Our derivatives accountants will help you identify the structure that serves your intended purpose.
- Due diligence services. If you are acquiring a minority or majority interest in an entity involved in derivatives securities, our derivatives accountants are available to review the documentation.
Dr. Barry Epstein is a recognized international accounting expert on U.S. GAAP and IFRS, auditing, financial analysis, and financial reporting practices. He has served as an expert in over 120 litigation consulting assignments.
In addition to derivatives litigation, our team can provide forensic accounting services for securities fraud, white collar criminal defense, auditor liability and accountants' malpractice.
Contact Dr. Epstein via email or by phone at 312-464-3520 for a confidential discussion of your case.