Name another thing about the completion accounts which should be put into the sale and purchase agreement
The accounting policies to be used when drawing them up.
It is also necessary to document the method by which these policies will be applied and guidance on how terms should be applied.
- -Slow-moving stock: sliding scale for valuation
- -Net realisable value: define
- - Debtors: parties should agree to apply a specific schedule of timings to identify bad debt
Are all areas for disagreement.
Also consider the need for restrictive covenants to prevent either of the parties trying to improve the accounts by making unnecessary changes