Changes in US GAAP Sample Clauses
The "Changes in US GAAP" clause addresses how contractual obligations or financial reporting requirements are affected if there are modifications to the United States Generally Accepted Accounting Principles (US GAAP). Typically, this clause specifies whether parties must adjust their practices, calculations, or disclosures to align with new or revised accounting standards. For example, if the Financial Accounting Standards Board (FASB) issues a new rule that changes revenue recognition, the clause may require parties to update their financial statements accordingly. The core function of this clause is to ensure that the contract remains relevant and enforceable even as accounting standards evolve, thereby preventing disputes or confusion over compliance due to changes in US GAAP.
Changes in US GAAP. If at any time any change in US GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the US Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the US Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in US GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with US GAAP prior to such change therein and (ii) the US Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in US GAAP.
Changes in US GAAP. If at any time any change in US GAAP would affect the computation of any Financial Covenant, and either the Borrower or the Majority Lenders shall so request, the Agent, the Lenders and the Borrower shall negotiate in good faith to amend such Financial Covenant to preserve the original intent thereof in light of such change in US GAAP (subject to the approval of the All Lenders); provided that, until so amended, (i) such Financial Covenant shall continue to be computed in accordance with US GAAP prior to such change therein and (ii) the Borrower shall provide to the Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such Financial Covenant made before and after giving effect to such change in US GAAP.