Memorandum To: Supervisor From: Date: March 14, 2011 Re: Leases and Lease Issues CONFIDENTIAL The trucking company currently owns 100 trailers and a new client have requested 20 more for a total of 120 trailers for its project. The relationship with the new client is uncertain but at the same time it has potential for significant growth of the company. The uncertainty of the relationship may have an effect on the financial position of the client company
a research to be conducted on leases and lease structure issues on the Financial Accounting Standards Board (FASB) website, in particular the current practice and thought related to direct financing, sales type, and operating leases. This paper is a memo addressed to the supervisor that summarizes
purchases of leases. The joint effort of the two has finally come to an end, with the new standards being issued out on February 25, 2016. These new standards will come into effect starting in 2019. It is important that our diversified company begins preparing for the major implications of these new standards and fully understand what we are dealing with. The Accounting Standards Update No. 2016-02, Leases (Topic 842) will have an immediate effect on our company because is involved in many lease-related
1. Law and the Impact on Business Leases You are a skateboard designer and decide to open a shop. You find a “perfect space” in a local mall and agree to sign a one-year lease agreement that runs from January 1 through December 31. The lease agreement specifies that the lease cannot be assigned without the mall’s consent. In late June, you decide that this space is not attracting enough customers, so you decide to assign the balance of your lease to Jennifer Beeswax, who owns a candle shop.
Finance BNRR Date: July 15, 1990 Subject: Lease Vs Buy Option for Auto Racks Equipment This memo is in regard to the recent proposal of leasing or buying the bi-level and tri-level Auto Rack equipment for Burlington Northern Railroad Company. As indicated before, this equipment is a great investment for our company as it exceeds our company’s 20% hurdle rate and therefore investing in them would be a great decision for the company. Hence this memo will seek to explain the optimal way to finance
MEMO Date: July 18, 2011 3 Subject: Leases and Lease Structure Issues 4 To: Regional Trucking Company 5 From: Bob Stanton This memo will cover the current practice and thought related to direct financing, sales type, and operating leases. I understad that Regional Trucking Company have limited time to cover all aspects of these areas. Disclosure Requirements for Capital Leases SFAS No. 13 also requires the disclosure of additional information for capital leases. The following
an interest in renewing their leases as soon as they expire. Investment Strategy This opportunity represents a Value-Add Investment strategy, a slightly
into a ten-year operating lease for office space in accordance with ASC 840, Leases. It has neither renewal option nor the ability to negotiate for renewal per lease agreement. Within the leased premise, NeedsLease has placed into service various leasehold improvements that have economic useful lives of 12 years. In the lease agreement, there are certain provisions that may require the lessee to perform certain activities and to incur certain costs at the end of the lease term. Such provisions
The Bybee Torture Memo On August 1, 2002, Justice Jay Bybee submitted the “Bybee Memo” or the ‘Torture Memo”, which describes the behavior that U.S. officials must exercise when interrogating outside of the continental U.S. as governed by the UN Convention Against Torture. Although this memo was rendered inoperable by the Bush Administration
ASC 420-10-15-3c states that the guidance of this topic applies to the transaction of “Costs to terminate a contract that is not a capital lease…” Lay’m-Off accounts for its lease of Plant A as an operating lease, therefore this transaction is also governed by topic ASC 420-10. ASC 420-10-25-12 provides guidance for the recognition of costs to consolidate or close facilities as follows: A liability for costs to terminate a