Introduction:
Ruby Traditions Ltd had presented two proposals for fund proposed expansion, the first proposal is issue 200,000 preference share into the public. The second proposal is sale and leaseback of land and building. Since two proposal have their individual features, therefore the recorded journal entries for each proposal are also different during the period.
In the following paragraphs, two of the proposals are analysed individually and then conclude with the most suitable proposal to meet the current requisite of the company. In the first proposal analysis, the impacts should be highlighted and the preference share should be classified in accordance with AASB. In the second proposal analysis, relevant journal entries will be recorded in compliance with AASB standard, And detailed explanation on the classification of proposed leasing agreement
The impact of Proposal 1 as perceived by the directors:
Preference share refers to stock which are issued for ordinary share. One of key benefit of owning preference share is that shareholder receives the dividend prioritize than common shareholder. Moreover, if the company goes bankrupt, the preference shareholders are able to claim greater amount than common shareholder. However, one of major difference between preference share and common share is that preference shares do not obtain any voting rights.
Thus, the director does not need get any opinion from preference shareholder when arrives with policymaking decision.
Agro-Chem, Inc. is a regional producer of agricultural chemicals based in Houston Texas that needs help making a lease versus purchase decision. By understanding the material presented, we will be able to come to a decision. However, after reviewing the information presented, there are a few problems that need to be investigated before finalizing our recommendation. Agro-Chem, Inc. chose to go with the financial manager’s idea of using a discount rate of 14% (average risk) to figure out the present value costs of leasing and purchasing even though the assistant treasure suggested a 12% (low risk) discount rate. Agro-Chem, Inc. brought in the company’s CPA to help settle the debate
2. Due to the circumstances of the contract (that it be for sale of land) specific performance will be awarded.
1.3 The example provided is a proposed new hotel located in Glencoe, Highlands. The client is Mr. Smith and the executing architects are R&M from Edinburgh. The Bill of Quantities has already been prepared and the price
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and whether the arrangement
While working on a consulting engagement, a supervisor in the team has given an assignment. The client is a regional trucking company. A new customer has approached the client with an opportunity that would require 120 trailers—20 more than the trucking company currently owns. The client is uncertain how long the relationship with the customer may last, but the deal has the potential for significant growth. The supervisor has asked 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
Attached are my edited version of the Global Terms (03) and Rental Requirement (01) document. All markups are from an insurance and risk management point of view, and the COI and EOP are issued based on our recommendations. Please have your legal counsel review and approve our changes to your agreement.
Today's online seminar again is the tenant rep prospecting, presentations and negotiations. So what we're going to be doing today is entering into the lease analysis platform of the REIWise Power Broker. Now if you are new to Power Broker this is a single solution that's all web based. You can subscribe to this for $399 per year and create unlimited analysis in marketing. If you are CCIM designee you do have the entire power broker transaction platform for free and you can register for that on a link that I will send in the email afterwards but let's go ahead and jump in and get right into the lease prospecting, presentations, and negotiations. So what I'm going to do is I am going to come to my client login page, which you can see on the
From the Request for Proposal, the audience description is "We want the designer to consider two audiences: our degree seeking ESU students who are in the program, and some writers in the community who might bot want to take an academic course, but who want to learn about or practice creative writing."
Explain the nature of a share. Distinguish between an ordinary share and a preference share.
Preferred stock (or preference shares) is a special class of stock that pays a fixed dividend set at the time of issuance. Also, preferred dividends must be paid before common stock dividends. To calculate the dividends for preferred stocks, you need to multiply the par value of the shares by the dividend percentage.
A preferred stock is a form of special equity ownership. They are commonly considered a form of investment that occurs somewhere between common shares and bonds. Bonds, on the other hand, are a form of the debt issue. Despite the two having numerous similarities, preferred stock has a tendency to be riskier than bonds, but they attract higher yields (Kimmel & Weygandt 2007). In an instance a company has gone bankrupt bonds take preference over preferred stock when receiving payments from liquidation process. To protect from market anxiety that come with bonds and preferred stock it is advisable that they invest in convertible securities. Convertible securities can provide income like a bond, have potential for growth based on the conversion option. Investing in such is a sure way that an investor will not lose their investments in a volatile risk.
On the other hand, a stock represents ownership in a corporation and a claim on its assets and future earnings. There are two main types of stocks: preferred and common. The former has no voting rights, a fixed rate of dividend payments per annum, and a higher claim on assets than common stock holders. Common stocks have the right to vote and received dividends after payment is
When we started our project I was at first unsure of what topic I was going to choose. I knew I wanted to do something related to sport. It was after some deliberation on which I settled on my first question, “How does the body react to a torn Anterior cruciate ligament (ACL), and a journey on the path to recovery.” After doing most of my research and interviews, I realized I would not have enough information to use in my discussion, so I have had to change my question. I will still however use my interviews as it is still relevant to my proposal.
Before going to redeem the preference shares as per section 80 of the Companies Act, 1956, a company should have to follow the conditions: i) There must be a provision in the Articles of Association regarding the redemption of preference shares. ii) The redeemable preference shares must be fully paid up. If there is any partly paid share, it should be converted in to fully paid shares before redemption. iii) The redeemable preference shareholders should be paid out of undistributed profit/ distributable profit or out of fresh issue of shares for the purpose of redemption. iv) If the shares are redeemed at a premium, it should be should be provided out of securities premium or profit and loss account or general reserve account. v) The proceeds from fresh issue of debentures cannot be utilized for redemption. vi) The amount of capital reserve cannot be used for redemption of preference shares. vii) If the shares are redeemed out of undistributed profit , the nominal value of share capital, so redeemed should be transferred to Capital Redemption Reserve Account. This is also known as capitalization profit.
A preferred share represents a class of ownership in a corporation that claims more on its assets and earnings than common share. For the most part, preferred shares have a dividend that ought to be paid out before dividends to common stockholders, and the shares generally do not carry voting rights. Preferred shareholders have more priority over common shareholders when it