how accounting is proof in court
Answers
Answer:
In Castel Electronics Pty Ltd v Toshiba Singapore Pte Ltd [2011] FCAFC 55 (20.04.11), a unanimous decision of the Federal Court consisting of Keane CJ, Lander and Besanko JJ stated that: -----------
“203. The exercise carried out by Mr Acton is often carried out by expert forensic accountants who identify the financial documents which are relevant to the inquiry. To the extent necessary, the documents are explained including their contents in order that the Court can understand the company’s business. They are often explained to establish some trend in the company’s business activities both before and after the cause of action arose. The Court could carry out the inquiry for itself. It could have regard to the underlying source documents and construct for itself the trends upon which reliance is put. However, the practice is to have forensic experts carry out the exercise in advance of the hearing in order to save the Court the time and trouble of the exercise. It is an appropriate way of presenting evidence relating to the financial affairs of a company which claims to have suffered a loss. Their evidence assists a Court in understanding transactions which involve complex accounting treatments. The evidence is a summary of the financial records of the company and admissible: Potts v Miller [1940] HCA 43 ; (1940) 64 CLR 282 per Dixon J at 302-303. It is not opinion evidence at all. It is a summary of the company’s financial records.
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