Prior Year Adjustment Clause Samples

A Prior Year Adjustment clause outlines the process for correcting errors or changes in financial statements that pertain to previous accounting periods. Typically, this clause specifies how such adjustments should be identified, documented, and reflected in current financial reports, often requiring restatement of prior period figures or disclosure in the notes to the accounts. Its core function is to ensure transparency and accuracy in financial reporting by providing a clear mechanism for addressing and rectifying past inaccuracies.
Prior Year Adjustment. (a) If, in any Contract Year: (i) due to reasons other than Seller’s failure to act as a Reasonable and Prudent Operator (A) Seller’s actual Ethylene production during the prior Contract Year is less than the Annual Planned Production for such Contract Year (a “Production Shortfall”) or (B) the actual costs of operation of the Plants exceed the sum of the amounts (in $) for each Cost Category for (1) in respect of the Contract Year beginning January 1, 2015, the period of time beginning on the Effective Date and ending December 31, 2014, and (2) in respect of each subsequent Contract Year, the prior Contract Year (a “Cost Overrun”), or a combination of the scenarios described in clauses (A) and (B) of this Section 5.3(a)(i), and, as a result thereof, (ii) the aggregate amount (in $) recovered by Seller as All Other Cash Production Costs from Buyer is less than 95% of the actual costs incurred by Seller in respect of each Cost Category for the prior Contract Year, net of any costs of Seller that have been satisfied pursuant to insurance proceeds actually received by Seller under Section 9.5 or otherwise (such positive difference (in $), the “Shortfall Amount”), then Seller will be entitled to include in the Price for the succeeding Contract Year an adjustment in an amount, in dollars, not to exceed the Shortfall Amount (the “Prior Year Adjustment”). (b) If the aggregate Shortfall Amount for any Contract Year is not recovered as a Prior Year Adjustment in the next Contract Year, including as a result of a Production Shortfall or a Cost Overrun, the unrecovered portion shall be carried forward and factored into the Prior Year Adjustment applied in respect of the following Contract Year.
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Related to Prior Year Adjustment

  • Salary Adjustment The salary of an employee returning from uncompensated leave shall be adjusted to reflect all non-discretionary increases distributed during the period of leave. While on such leave, an employee shall be eligible to participate in any special salary incentive programs.

  • Salary Adjustments At any time during the term of this Contract, the Board may, in its discretion, review and adjust the salary of the Superintendent, but in no event shall the Superintendent be paid less than the salary set forth in Section 3.1 of this Contract except by mutual agreement of the two parties. Such adjustments, if any, shall be made pursuant to a lawful Board resolution. In such event, the parties agree to provide their best efforts and reasonable cooperation to execute a new contract incorporating the adjusted salary.

  • Year-End Adjustment If necessary, on or before the last day of the first month of each fiscal year, an adjustment payment shall be made by the appropriate party in order that the actual Fund Operating Expenses of a Fund for the prior fiscal year (including any reimbursement payments hereunder with respect to such fiscal year) do not exceed the Operating Expense Limit.

  • CPI Adjustment If the CPI Percentage Increase (as defined below) is more than [***] for the relevant Adjustment Period, then the Rent payable during that Adjustment Period shall be adjusted upward by a percentage equal to the CPI Percentage Increase (as defined below) applicable to such Adjustment Period, but not to exceed an adjustment during any Adjustment Period of greater than [***]. The term “Consumer Price Index” shall mean the unadjusted Consumer Price Index for All Urban Workers, U.S. City Average, All Items, 1982-84=100, calculated and published by the United States Department of Labor, Bureau of Labor Statistics. The “CPI Percentage Increase” shall mean, with respect to any Adjustment Period, [***]. For the avoidance of doubt, no CPI Adjustment shall be made to any payment due under this Ground Lease for any Adjustment Period if the result of such CPI Adjustment would be to (a) reduce the amount of such payment to an amount that is less than the amount of such payment due for the immediately preceding Adjustment Period or (b) to raise the amount of such payment to an amount that is greater than [***]. For illustrative purposes only, [***]. The CPI Percentage Increase for any Adjustment Period shall be calculated by the Tenant, and the Tenant shall deliver written notice to the Landlord describing such calculation in reasonable detail (a “CPI Notice”) no later than thirty (30) days after the commencement of any Adjustment Period. If the Landlord disagrees with the Tenant’s calculation of the CPI Percentage Increase, then the Landlord shall deliver to the Tenant written notice, describing the basis for such disagreement in reasonable detail (a “CPI Disagreement Notice”), not later than thirty (30) days after delivery of the CPI Notice. If the Landlord fails to deliver a CPI Disagreement Notice within thirty (30) days after delivery of any CPI Notice, then the Landlord shall be conclusively deemed to have agreed with the calculation of the CPI Percentage Increase set forth in such CPI Notice.

  • Section 754 Adjustment To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as the result of a distribution to a Holder in complete liquidation of his interest in the Partnership, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Holders in accordance with their interests in the Partnership in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Holders to whom such distribution was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.