Trans-American Investments Case

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

Acquisition of 12 Containership vessels to participate in the “Motorways of the Seas” European Union Programme.

Further, Codification 840-10-25-42 through 3 distinguishes lease as sales type lease, direct finance lease, Leveraged lease, and operating lease. Sales type of lease is a lease which gives rise to manufacturers or dealer a profit or loss and greater fair value of a leased equipment than its carrying cost. If not, then it should meet following two criteria: (a) It involves real estate or meet criteria under paragraph ASC 840-10-25-1. (b) It does not involve real estate or meet criteria under paragraph ASC 840-10-25-1 or sub-criteria under

Lease is defined as an agreement where lessors promised to convey the right to use the asset for an agreed period of time to lessees in return for a sum of payment as in AASB 117 paragraph 4. Leases can be classified as either finance or operating lease based on the economic substance of the agreement.

terms of the agreement are to the customer and the contract favoring the dealership. The UCC’s

We advise your company to purchase an adequate inland marine policy to cover for property in transit and

“…the ownership of the goods shall remain with the Seller which reserves the right to dispose of the goods until payment in full for all goods supplied has been received by it or until such time as the buyer sells the goods to its customers by way of bona fide sale at full market value.”

When an asset is leased for most of its useful life, then most of the benefits and responsibilities of ownership are transferred to the lessee. It is assumed that 75% or more of the expected economic life of the asset is an appropriate threshold point for this purpose. This could be a problematic because the lease term is not really certain, it may be renewable beyond what was initially stated or it may be cancelable after a specific

Moreover, a common description of the lessee’s leasing arrangements includes, but is not limited to the premises for determining the expected rent; the existence and terms of renewal or purchase terms and escalation clauses; and Restrictions by rental arrangements, such as dividends, additional and further leases (AASB 2009, p.20-21).

This type of warranty although puts the control in the hands of the consumer for the length of the

To introduce into the context relevant for the processing of the case, it will firstly be shown which circumstances shape the industry. It will also be demonstrated how and why the latest economic developments are influencing the container shipping business and consequently are relevant for the following work.

Liner shipping companies are still struggling hard with capacity management due to deliveries of ships accounting for 1.3 million TEU. Most of the companies are reducing their services which enabled them to push through rate increases temporarily, But the profit margin is still limited (Clarkson PLC 2014). To cope with the market environment focusing on intense pricing pressure, shipping companies have started to cooperate in many forms, ranging from slot-chartering, vessel sharing, cargo sharing, strategic alliances, mergers and acquisitions etc. The main reason for alliances is due to the need of cargo volumes in the scale of operation and to spread the risk associated with investment in the huge vessels.

Consumers need to know what protection is available for them while dealing with contracts that deal with the sales of goods and the supply of goods and services.

WHEREAS the Buyer is the main European supplier of sea products to the pharmaceutical and cosmetic industry;

(5) When goods are delivered to a ship chartered by the buyer, it is a question depending on the circumstances of the particular case, whether they are in the possession of the master as a carrier or as