Present value calculation of needs under the Inheritance (Provision for family and dependents) Act 1975

Present value calculation of needs under the Inheritance (Provision for family and dependents) Act 1975.
The expert was instructed to prepare a report quantifying the needs of two children in their early to mid-teens following the death of their father.
Their father’s estate was substantial; however, there were claims on it from various relatives in addition to his immediate family.
Additionally, there were several pecuniary bequests and a doubtful debt, which needed to be taken into account before arriving at a value of estate to be made available.
The report prepared included a calculation of the children’s educational and maintenance needs to the age of 25 taking into consideration the fact that both children were exceptionally talented in both academic and extra-curricular fields.
There were a number of assumptions such as:
1. The likely school and university fees and the cost of extra-curricular activities to continue fostering the children’s capabilities
2. Future levels of inflation
3. Interest rates and investment returns
The final report took into account two possible means of supporting the children:
1. Using the father’s estate to cover future needs as they arose;
or 2. Investing a sum that would return enough income annually to meet expected future costs
The overall conclusion was that their combined needs amounted to just under £1 million over the next 10 to 12 years.

Prosecution of an employee for theft of cash and false accounting

In April 2004 Brian was offered a job as manager of a public house in Solihull. He had many years experience in the pub trade but had never managed a pub before. He explained to the pub owner that he would need some help with book-keeping. The owner explained a system of record keeping and banking which he had himself devised. When the quarterly VAT return was due in July the owner checked the records and found the there appeared to be a substantial shortfall in the bankings. He complained to the police and Brian was charged with theft of the shortfall and false accounting.

There were many serious deficiencies in the system devised by the pub owner and the difficulties that Brian would have experienced in attempting to operate it.

There were also a number of possible causes of the cash shortfall, other than theft by Brian.

When the case came to court many of these points were put to the prosecution witnesses in cross-examination.

At the close of the prosecution evidence the judge agreed that Brian had no case to answer and he was acquitted.

Firm mounts fightback after forensic accountants uncover scandal

An article from NIFA.co.uk

Shareholders at global camera giant, Olympus, have voted in a new board after forensic accountants in Japan uncovered a one billion pound scandal involving the hiding of losses going back over twenty years.

The company had nominated new members to the board after all its previous team quit in the wake of the scandal, which came to light last October and knocked almost fifty per cent off the company’s value on the Tokyo Stock Exchange.

However, former chief executive Michael Woodford, who broke news of the scandal at the firm, has threatened to have the results of the vote at the extraordinary general meeting annulled.

He said “Today is the day the new Olympus is supposed to start. But, he added: ‘It’s Alice in Wonderland.’The company still faces investigation by the Japanese authorities and several former members of the management, possible criminal charges.

 

Forensic accountants in energy price investigation

NIFA APRIL 2012 Reported ….

UK energy industry regulator Ofgem has called in forensic accountants as it steps up its investigation into pricing by the big six suppliers.

The action has been prompted by EDF Energy’s decision to put up its gas prices by 15.4 per cent and electricity prices by 4.5 per cent from 10th November. It is the last of the ‘big six’ to announce price increases for domestic customers. The company says that it had absorbed wholesale price rises before being forced to raise costs to consumers.

The regulator has now decided to see whether higher prices are justified.
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