TEA.15.3

Description

This article suggests that economic experts should consider moving away from accrual based, accounting centered lost profits and toward cash based lost dividends when calculating economic damages in cases where shareholders are looking to recoup past lost profits.  The discussion here is limited to commercial damage claims where lost profits are the measure.  It is shown here that when experts rely on cash dividends as the variable of loss to shareholders, a more comprehensive, integrated and just system of calculation is recognized, increasing economic certainty in damage reports and possible subsequent verbal testimony.