Modified Net Law and Legal Definition
The definition of Modified Net varies according to the transaction and entities involved. For example, under one business agreement, Modified Net Assets is defined as follows:
Modified Net Assets = (unrestricted net assets) + (temporarily restricted net assets) + (permanently restricted net assets) - (intangible assets) - (unsecured related-party receivables)
Or another example:
Modified Net Revenue (MNR) is an adjustment to Net Revenues for the purpose of calculating the rate case Financial and Safety-net Cost Recovery Adjustment Clause.
The MNR excludes the impact of SFAS 133 transactions (Accounting for Derivative Instruments and Hedging Activities); for Debt Service, the MNR excludes actual ENW debt service and substitutes the ABC Co.'s debt service expenses as forecasted in the WP-02 Final Studies.