Common use of AUDIT AND ACCOUNTING RECORDS Clause in Contracts

AUDIT AND ACCOUNTING RECORDS. The Operator shall, in an independent and identified way, keep accounting records regarding the Consortium activities, which shall follow the accounting principles usually accepted by the international oil industry practices, according to specific documents entered into by and between the Parties. The accounting principles shall not conflict with the Brazilian laws and regulations, Except for legal or contractual provisions to the contrary, the Consortium’s financial statements shall be prepared every calendar year. Each Consortium Member shall keep its own accounting records for accounting and tax purposes regarding its Proportional Share. The Consortium Members shall record in their respective accounting books the profits earned with the consortium activity, including amortization/depreciation quotas regarding the capital costs incurred, according to their respective Proportional Shares. Each Consortium Member shall, at its own cost, be entitled to review, audit, and verify the documentation supporting the Operator’s entries and books related to the Operation and the Consortium operation, pursuant to the applicable legal rules and specific documents entered into by and between the Parties.