based on the principal of inventories

English translation: Incorrect parsing

01:29 Aug 6, 2011

English language (monolingual) [PRO]
Bus/Financial - Accounting / Mergers & Acquisitions

English term or phrase: based on the principal of inventories

-------------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------------

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?

usami KudoZ activity Questions: 7 (none open) Answers: 0
Local time: 02:52

Selected answer:Incorrect parsing

Explanation:
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.

Selected response from:

B D Finch
France
Local time: 19:52

Grading comment

Thank you.
4 KudoZ points were awarded for this answer

SUMMARY OF ALL EXPLANATIONS PROVIDED

3 +2

the amount of a loan excluding any interest owing

Stephen D

4 +1

Incorrect parsing

B D Finch

typo for "principle"

Jack Doughty

Discussion entries: 1

Answers

1 hr confidence:

peer agreement (net): +2

the amount of a loan excluding any interest owing

Explanation:
As I understand it it's the amount of a loan excluding any interest due.

Reference: http://www.financialdictionary.net/define/Principal/

Stephen D
Local time: 18:52
Native speaker of: English
PRO pts in category: 7

5 hrs confidence:

typo for "principle"

Explanation:
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.

Jack Doughty
United Kingdom
Local time: 18:52
Native speaker of: English
PRO pts in category: 16

7 hrs confidence:

peer agreement (net): +1

Incorrect parsing

B D Finch
France
Local time: 19:52
Native speaker of: English
PRO pts in category: 8

Grading comment

Thank you.

Login or register (free and only takes a few minutes) to participate in this question.

You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.

Return to KudoZ list

KudoZ™ translation help

The KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.

See also:

ProZ.com term search

Search millions of term translations

based on the principal of inventories

English translation: Incorrect parsing

Answers

KudoZ™ translation help

Your current localization setting

Select a language

based on the principal of inventories

English translation: Incorrect parsing

Answers

KudoZ™ translation help

You have native languages that can be verified

Your current localization setting

Select a language