Non-Cash Cost Allocation Clause Samples
The Non-Cash Cost Allocation clause defines how expenses that do not involve actual cash outflows, such as depreciation, amortization, or stock-based compensation, are distributed among parties or accounted for in financial statements. In practice, this clause specifies the methodology for assigning these non-cash costs to different departments, projects, or entities, ensuring that financial reports accurately reflect the economic impact of such expenses. Its core function is to provide transparency and consistency in financial reporting, preventing disputes over how non-cash costs affect profitability or cost-sharing arrangements.
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Non-Cash Cost Allocation. Any non-cash costs or expenses caused by, incurred or otherwise arising from or relating to the Services shall be allocated to MSC and MPM for financial statement purposes only, without any corresponding cash reimbursement required, in accordance with generally accepted accounting principles, based on the Allocation Percentage principles described in Section 5.01 hereof.
Non-Cash Cost Allocation. The actual, fully burdened cost of any item relating to any Non-Management Personnel or Management Personnel that does not result in a direct, out of pocket cash expense may be allocated to East and West for financial statement purposes only, without any corresponding cash reimbursement required, in accordance with generally accepted accounting principles, based on the Allocation Percentage principles described in Section 3.1 hereof.
Non-Cash Cost Allocation. Any non-cash costs or expenses caused by, incurred or otherwise arising from or relating to the Services shall be allocated to Hexion and Momentive for financial statement purposes only, without any corresponding cash reimbursement required, in accordance with generally accepted accounting principles, based on the Allocation Percentage principles described in Section 5.01 hereof.
Non-Cash Cost Allocation. Any costs that are non-cash costs or expenses shall be allocated to Verso and NewPage for financial statement purposes only, without any corresponding cash reimbursement required, in accordance with U.S. generally accepted accounting principles and based on the otherwise applicable allocation methodology, if any.
Non-Cash Cost Allocation. Any Covered Costs that are non-cash costs or expenses shall be allocated to HPI and SEG for financial statement purposes only, without any corresponding cash reimbursement required, in accordance with U.S. generally accepted accounting principles and based on the otherwise applicable Allocation Methodology. All other Covered Costs that are non-cash costs or expenses shall be allocated in accordance with clause (a) of Section 5.01.