Case Studies
J.S. Held Acquires Technorm, Québec’s Leading Forensic, Building Safety & Compliance Experts
Read MoreA fire broke out at the warehouse and caused extensive damage to the stock contained within.
This loss involved numerous parties in different geographical locations (e.g., insurers in Hong Kong, Singapore, and France; the insured and adjusters in Taiwan and France) and multiple languages (Chinese, English, and French). Our team in Singapore and London included a French forensic accountant who had numerous meetings with the insured, adjusters, and insurers in France to request documents, inquire about claim methodology, and update the loss measurement to the progress of our review.
We had weekly progress meetings with the insurers in Hong Kong and the adjusters in Taiwan and France, with our J.S. Held team in Singapore and London contributing to a speedy settlement for both stock loss and business interruption loss.
The claim is based on the lost stock written off from their stock system and several adjustments that were not in the system, totaling about EUR 30M. J.S. Held calculated EUR 27.4M based on our review of a large volume of financial data and supporting documents.
For the damaged volumes, the inventory was too severely damaged to allow physical counts, so our verification of volumes is based on the underlying accounting records, such as a roll forward analysis, sample system screenshots to support the claimed stock volumes, and reconciliation of the damaged and expired stock listing with the claim.
Regarding the stock value, we reviewed purchase invoices on a sample basis, which supported most of the claimed unit prices. We also reviewed a large volume of supporting documents for adjustments such as consignment stock, returned stock, purchases not entered in the system at the time of the incident, rebate income, etc., and excluded those unsupported and not covered under the local policy amounts from our calculation.
We understand that the J.S. Held stock calculation was included within the final settlement figure and agreed upon by the insured.
Lumi Ishikawa
Vice President
Forensic Accounting - Insurance Services
+44 20 4574 5262
[email protected]
> Inventory / Stock Losses
Our team provides financial expertise to assess the precise volume and value of inventory or stock that is lost or damaged as a result of adverse incidents such as fraud, arson, theft, or natural disasters. Our experts conduct physical examinations; compile and review underlying accounting records; and employ industry data to identify, document, and value inventory. We help clients to quantify their loss and determine total damages in terms of replacement costs; selling price; associated consequential losses and other ancillary costs such as transportation, freight, and taxes.
> Forensic Accounting
Our Forensic Accounting Practice includes Certified Public Accountants, Certified Fraud Examiners, Certified Financial Forensics experts, and other financial experts who specialize in financial investigations, dispute resolution, and regulatory compliance. We deliver the truth behind the numbers in financial matters involving insurance claims and disputes, business interruption/lost profits, cyber damages, Delay in Start-Up (DSU) / soft costs, extra expense, family disputes, fraud, labor & employment disputes, personal injury damages, and bankruptcy/insolvency.