Cashflow and Material adverse effect: Difference between pages

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(CF).  
(MAE).  


The movement of cash in or out of a business, a project or a financial instrument in a particular period under review.
A clause in a loan agreement.


 
It is intended as a 'catch-all' clause and states that if there is a change in the circumstances of the borrower that materially and adversely affects the borrower's ability to repay, then this will constitute an event of default.
The cashflow for a given period may differ from the profit or loss for the same period because of:
 
#Items in cashflow which are not part of profit or loss.  For example capital expenditure or the collection of trade debtors arising and recognised in prior periods; and
#Items in profit or loss which are not cashflows, such as depreciation, amortisation, or making accruals.
 
 
Cashflow is sometimes written ''cash flow''.




== See also ==
== See also ==
* [[Accrual]]
* [[Event of default]]
* [[Amortisation]]
* [[Loan agreement]]
* [[Cash]]
* [[Material adverse change]]
* [[Cash conversion cycle]]
* [[Adverse event]]
* [[Cash flow statement]]
* [[CertICM]]
* [[Depreciation]]
* [[Free cash flow]]
* [[Incremental cash flows]]
* [[Profit]]
 
 
===Other links===
[http://www.treasurers.org/node/9020 Students: Cash in, The Treasurer, May 2013]


[[Category:Cash_management]]
[[Category:Bank_Lending]]
[[Category:Liquidity_management]]
[[Category:Debt_Capital_Markets]]
[[Category:Legal_Documentation]]

Revision as of 07:35, 5 July 2014

(MAE).

A clause in a loan agreement.

It is intended as a 'catch-all' clause and states that if there is a change in the circumstances of the borrower that materially and adversely affects the borrower's ability to repay, then this will constitute an event of default.


See also