Parent Financial Reporting Clause Samples
The Parent Financial Reporting clause requires the parent company in a contractual relationship to provide regular financial statements or reports to the other party. Typically, this involves sharing audited annual accounts or interim financial updates to demonstrate the parent’s financial health and stability. This clause ensures transparency and allows the other party to monitor the parent company’s financial position, thereby managing risk and supporting informed decision-making throughout the business relationship.
Parent Financial Reporting. The Borrower will cause the Parent to deliver to the Administrative Agent (which shall promptly make such information available to the Lenders in accordance with its customary practice):
(i) as soon as available and in any event within 90 days after the end of each Fiscal Year, a consolidated balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal Year and the related consolidated statements of income and cash flows for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all reported on by independent public accountants of nationally recognized standing, with such report to be free of any “going concern” or similar qualification or exception or any qualification as to the scope of such audit;
(ii) as soon as available and in any event within 60 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, a consolidated balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal Quarter and the related consolidated statement of income and cash flows for such Fiscal Quarter and for the portion of the Fiscal Year ended at the end of such Fiscal Quarter, setting forth in each case in comparative form the figures for the corresponding Fiscal Quarter and the corresponding portion of the previous Fiscal Year, all certified by a Financial Officer of the Parent to present fairly in all material respects the financial condition of the Parent and its Subsidiaries on a consolidated basis as of their respective dates and the results of operations of the Parent and its Subsidiaries for the respective periods then ended, subject to normal year-end adjustments and the absence of footnotes; and
(iii) no later than five (5) Business Days following the delivery of each set of financial statements referred to in Sections 5.01(a)(i) and 5.01(a)(ii), a certificate of a Financial Officer of the Parent demonstrating and certifying compliance with the financial covenant set forth in Section 5.01(i).
Parent Financial Reporting. The consolidated audited financial statements for the year ended December 31, 2020 of Parent, or its predecessor entities, as applicable, including, in each case, the notes thereto (collectively, the “Parent Financial Statements”), were prepared in accordance with International Financial Reporting Standards, consistently applied, except as otherwise indicated in the Parent Financial Statements, and present fairly, in all material respects, the consolidated financial position, financial performance and cash flows of Parent, or the relevant predecessor entity, for the dates and periods indicated therein.