Misconception · MIS:waiver-date-erases-balance-sheet-breach

Mistaken idea “A waiver erases the balance-sheet-date breach”

Mistaken reasoning: This mistake overwrites the covenant chronology instead of analyzing the waiver's timing, duration, reach, and future conditions.

Updated Aug 21, 2026 Review due Sep 30, 2026

Why this is mistaken

Retain the breach and lender right at year-end. Add the waiver as later evidence and test exactly what right it waives and for how long.

Where to watch

When this mistake may appear

  • A lender signs a waiver after December 31.
Check your work

Your work may contain this mistake if:

  • The workpaper changes breach to no breach.