GAAP; Rounding Sample Clauses
The "GAAP; Rounding" clause establishes that all financial calculations and statements referenced in the agreement must adhere to Generally Accepted Accounting Principles (GAAP), and that numerical amounts may be rounded as specified. In practice, this means that any financial figures, such as revenues or expenses, are prepared using standard accounting rules, and minor discrepancies due to rounding (for example, to the nearest dollar or cent) are permitted. This clause ensures consistency and accuracy in financial reporting, while also preventing disputes over insignificant differences caused by rounding.
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GAAP; Rounding. Unless the context otherwise clearly requires, all accounting terms not expressly defined herein shall be construed, and all financial computations required under this Agreement shall be made, in accordance with GAAP. Any financial ratios required to be maintained by Borrower pursuant to the Loan Documents shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number using the common – or symmetric arithmetic – method of rounding (in other words, rounding-up if there is no nearest number).