Changes in Accounting Procedures Clause Samples

The "Changes in Accounting Procedures" clause defines how modifications to a party's accounting methods or policies are handled during the term of an agreement. Typically, this clause requires a party to notify the other if it intends to alter its accounting practices, and may require that any changes comply with generally accepted accounting principles or receive prior approval. Its core function is to ensure consistency and transparency in financial reporting, preventing one party from unilaterally changing accounting methods in a way that could affect financial statements, obligations, or performance metrics under the contract.