Accounting

At the heart of many economic processes is harm. Thinking about harm without knowing the basics of accounting can be a woeful one. At the first contact with the accounting, a lawyer who has acquired only legal knowledge feels at least uncomfortable. In accounting – as in traffic – the key is whether we move on the right or on the left. The ledger account has two sides:
(a) a left side called “Wn” and a right-hand page called “Ma”.

On the BLAME side, the company saves what it has. On the “Ma” side, it saves what is not there. In banking accounting it is the other way around. When we get to inventory valuation, there are two nice-sounding methods:
(a) FIFO (first in first out) and LIFO (last in first out).

Fifo cannot be confused with FIFA or UEFA. It is impossible to understand the damage without understanding the adjustment for active and passive accruals and without the principles of valuation of works in progress. The lawyer is not alone in being able to measure the damage, but knowing the accounting rules can communicate with accounting specialists. Specialists, however, expect the lawyer to say what he wants to value. Then specialists immediately know how to count it. In order for a lawyer to say what he wants to value, he must understand at least the accounting basis.