Aug 6, 2011 01:29
13 yrs ago
English term
based on the principal of inventories
English
Bus/Financial
Accounting
Mergers & Acquisitions
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A. Representation/warranty on basis of preparation of financial statements.
(a) Sellers have delivered to Buyer the audited balance sheets of the Company dated [date 1] and [date 2], and the related statements of income, shareholder’s equity, and cash flows for the fiscal years then ended. Each of these financial statements (i) is complete and correct in all material respects; ...and (iv) reflects all liabilities, including taxes, of the Company as of the date thereof. The inventory valuations in each of such financial statements are ***based on the principal of inventories*** at weighted average cost or market for a number of years, with all obsolete or unusable or not readily salable inventories having been either eliminated of properly written down.
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Question:
What does "the principal" mean?
Does it mean principal as opposed to interest?
Or does it mean some other monetary amount?
If so, specifically what kind of amount will it be?
A. Representation/warranty on basis of preparation of financial statements.
(a) Sellers have delivered to Buyer the audited balance sheets of the Company dated [date 1] and [date 2], and the related statements of income, shareholder’s equity, and cash flows for the fiscal years then ended. Each of these financial statements (i) is complete and correct in all material respects; ...and (iv) reflects all liabilities, including taxes, of the Company as of the date thereof. The inventory valuations in each of such financial statements are ***based on the principal of inventories*** at weighted average cost or market for a number of years, with all obsolete or unusable or not readily salable inventories having been either eliminated of properly written down.
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Question:
What does "the principal" mean?
Does it mean principal as opposed to interest?
Or does it mean some other monetary amount?
If so, specifically what kind of amount will it be?
Responses
+1
7 hrs
Selected
Incorrect parsing
The phrase you have extracted makes no sense. I think that, if you parse it properly, the meaning should become clear.
"based on the principle of inventories at weighted average cost or ...".
i.e. The inventory valuations are based upon one of the principles of valuation given after the phrase in question.
"based on the principle of inventories at weighted average cost or ...".
i.e. The inventory valuations are based upon one of the principles of valuation given after the phrase in question.
Peer comment(s):
| agree |
Thuy-PTT (X)
5 days
|
4 KudoZ points awarded for this answer.
Comment: "Thank you."
+2
1 hr
the amount of a loan excluding any interest owing
As I understand it it's the amount of a loan excluding any interest due.
Peer comment(s):
| agree |
Liz Dexter (was Broomfield)
1 hr
|
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Thanks Liz
|
|
| agree |
vierama
: exactly
1 day 12 hrs
|
5 hrs
Jack Doughty
United Kingdom
United Kingdom
Native in English
&
English
United Kingdom
Translator since 1953
Native in: English
Works in: Russian to English, German to English, English
Related KudoZ points
:
16
typo for "principle"
It seems to me more likely that the inventories are based on the principle of what follows, rather than "principal" being correctly used in the financial sense.
Discussion