An accountant who had prepared financial statements did not need to be designated as an expert witness in order to provide testimony regarding those financial statements, per the Business Court’s ruling in A-1 Pavement Marking, LLC v. APMI Corporation, 2009 NCBC 15 (N.C. Super. Ct. June 26, 2009). The opinion also discusses generally accepted accounting principles ("GAAP") relevant to financial statements of consolidated entities.
The issue in A-1 was Plaintiff’s calculation of a bonus due one of the Defendants, which was to be based on Plaintiff’s gross profits. The Plaintiff’s consolidated financial statements had eliminated a significant receivable due from a subsidiary. The Defendant asserted that his bonus would have been substantially higher with the inclusion of that receivable in the gross profit calculation, and brought a claim under the North Carolina Wage and Hour Act.
The Plaintiff moved for summary judgment, relying on an affidavit from the accountant who had prepared the financial statements on which the calculation was based. The Defendant objected to what it termed "improper opinion testimony," and argued that the accountant had never been designated as an expert witness.
Judge Diaz rejected the argument that the accountant was an undisclosed expert who shouldn’t be allowed to testify, holding: