DEFINING ‘MATERIAL’ AND ‘SIGNIFICANT’ Sample Clauses

This clause establishes clear definitions for the terms 'material' and 'significant' as they are used throughout the agreement. It typically sets objective or subjective thresholds—such as financial amounts, impact on obligations, or relevance to the contract’s purpose—to determine when an event, breach, or fact rises to the level of being considered material or significant. By providing these definitions, the clause ensures consistency and reduces ambiguity in interpreting the contract, helping parties understand when certain rights or remedies may be triggered.
POPULAR SAMPLE Copied 60 times
DEFINING ‘MATERIAL’ AND ‘SIGNIFICANT’. The materiality concept states that financial information is material to the financial statements if it would change the opinion or view of a reasonable person. In other words, all important financial information that would sway the opinion of a financial statement user should be included in the financial statements. International Accounting Standards (IAS 1), Presentation of Financial Statements, read together with South African Accounting Standards (SAAS 320.03), defines items as material „if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor.‟ Materiality can thus be either quantitative or qualitative or both. Materiality is inherently subjective in nature and it enables a company to measure and disclose only those transactions that are sufficiently large amounts to be of concern to the users of financial statements. „Significant‟ implies a higher level of importance than „material‟. A significant transaction impacts on Mintek as a whole. An occurrence may be material but not necessarily significant, whereas any occurrence that is significant will be material, as it will have an impact on the fulfilment of Mintek‟s mandate as a public entity and its operative effectiveness. In terms of Mintek‟s nature of business and extent of operations, a significant item is defined as one which exceeds the maximum monetary limit that the Chief Executive Officer of Mintek can authorize, in terms of Mintek‟s Delegation of Authority. In the Mintek environment, the public nature of the funds that constitute a significant portion of Mintek‟s income necessitates a narrower definition of “material” than merely being an influence on economic decisions. As such, therefore, the definition of “material” transactions within Mintek will necessarily include any transactions that may have an impact on the presentation of the annual financial statements, as an accurate representation of the “full and proper records of the financial affairs” of Mintek, as required by Section 55(1)(a) of the PFMA.
View SourceView Similar (3)

Related to DEFINING ‘MATERIAL’ AND ‘SIGNIFICANT’

  • Adverse Weather Shall be only weather that satisfies all of the following conditions: (1) unusually severe precipitation, sleet, snow, hail, or extreme temperature or air conditions in excess of the norm for the location and time of year it occurred based on the closest weather station data averaged over the past five years, (2) that is unanticipated and would cause unsafe work conditions and/or is unsuitable for scheduled work that should not be performed during inclement weather (i.e., exterior finishes), and (3) at the Project.

  • Adverse Developments Since June 30, 2009, there has been no material adverse change in the business, operations or condition (financial or otherwise) of the Company; nor has there been since such date, any damage, destruction or loss, whether covered by insurance or not, materially or adversely affecting the business, properties or operations of the Company.

  • Significant Non-Compliance Under Article 5

  • Financial Condition; No Material Adverse Change (a) The Borrower has heretofore furnished to the Administrative Agent its consolidated balance sheet and statements of income, stockholders equity and cash flows (i) as of and for the fiscal years ended (x) December 31, 2014 and December 31, 2013, in each case, audited by PricewaterhouseCoopers, independent public accountants and (y) December 31, 2012 audited by Deloitte LLP, independent public accountants and (ii) as of and for the fiscal quarter ended March 31, 2015. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated Restricted Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end adjustments in the case of the unaudited financial statements referred to in clause (ii) above and the absence of footnotes in the case of the unaudited and draft financial statements referred to in clauses (i) and (ii) above. (b) Since December 31, 2014, no event, development or circumstance exists or has occurred that has had or could reasonably be expected to have a material adverse effect on (x) the business, property, financial condition or results of operations of the Borrower and its Restricted Subsidiaries, taken as a whole, (y) the rights of or remedies available to the Agents and the Lenders under this Agreement, any Guaranty, any Holdings Guaranty or, as of the Amendment No. 4 Effective Date, any Security Document or (z) on the ability of the Borrower to consummate the Transactions.

  • Financial Condition; No Material Adverse Effect (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein and (ii) fairly present in all material respects the financial condition of the Acquired Company and its Subsidiaries as of the respective dates thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein. (b) The Unaudited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present in all material respects the financial condition of the Acquired Company and its Subsidiaries as of the dates thereof and their results of operations for the periods covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments. (c) The Borrower has heretofore furnished to the Joint Lead Arrangers the consolidated pro forma balance sheet of the Borrower and its Subsidiaries as of March 31, 2015, and the related consolidated pro forma statement of operations of the Borrower as of and for the twelve-month period then ended (such pro forma balance sheet and statement of operations, the “Pro Forma Financial Statements”), which have been prepared giving effect to the Transactions (excluding the impact of purchase accounting effects required by GAAP) as if such Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of operations). The Pro Forma Financial Statements have been prepared in good faith, based on assumptions believed by the Borrower to be reasonable as of the date of delivery thereof, and present fairly in all material respects on a pro forma basis and in accordance with GAAP the estimated financial position of the Borrower and its Subsidiaries as of March 31, 2015, and their estimated results of operations for the periods covered thereby, assuming that the Transactions had actually occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of operations). (d) Since the Closing Date, there has been no Material Adverse Effect.