for performing general repair and maintenance on the leased premises. Assuming that the lessee is required to make deposits to financially protect the lessor concerning the maintenance obligation by setting up a reserve‚ the guidance in ASC 840-10-05-9A through 840-10-05-9C states that the maintenance reserve shall be recognized as a deposit asset and reimbursed later when the required repair and maintenance is completed by the lessee. However‚ the provision in the lease agreement does not call upon
Premium Lease International Financial Reporting Standards Leasehold estate
U.S. GAAP‚ include calculations‚ etc. + Pass off to Kathy/Chelsea to talk about Need space case. * Under US GAAP ASC 840-30 it would be treated as a capital lease * Lease term is> 75% of economic life * P.V. of MLP is > 90% of FMV of leased property * Record the asset and obligation at PV of MLP (ASC 840-30-30-1) * Depreciation- ASC 840-30-35-1 (a) and (b) gives guidance on how to depreciate when ownership transfers or not Under U.S. GAAP many things in
Premium Property Finance Generally Accepted Accounting Principles
by Goliath. For Provision 1‚ our group thinks that the external legal counsel $500‚000 should be excluded from minimum lease payments‚ and $1 million of legal fees paid by Big Bear should be included in minimum lease payments. According to ASC 840-10-25-5‚ it says “For a lessee‚ minimum lease payments comprise the payments that the lessee is obligated to make or can be required to make in connection with the leased property‚ excluding both of the following: a. Contingent rentals b. Any guarantee
Premium Lease Renting Leasing
Per your request‚ our group conducted research to determine whether costs or potential costs of the provisions of Big Bear Power’s lease of Goliath Co’s combustion turbine should be included in its minimum lease payments. We have provided a summary of the facts‚ our conclusion‚ the basis for our conclusion‚ and an analysis of possible alternatives to our conclusion as requested. Summary of the Facts Big Bear Power (the Company)‚ a public utility company‚ is leasing a combustion turbine from
Premium
three provisions that we must examine to determine whether they should be included in the “minimum lease payment” as defined in ASC 840. Provision 1 This provision involves Big Bear paying $500‚000 to its external counsel‚ and $1 million of legal fees to Goliath Co. The $1 million fee to Goliath Co. should be included in the minimum lease payment. This is supported by 840-10-25-6 which states: Fees that are paid by the lessee to the owners of the special-purpose entity for structuring the lease
Premium Gas turbine Business terms Lawyer
AUTHORITATIVE AND INTREPRETIVE GUIDANCE CONSIDERED ASC 410-20-15-2 (Asset Retirement and Environmental Obligations) ASC 410-20-25-4 (Asset Retirement and Environmental Obligations) ASC 410-20-15-2a (Asset Retirement and Environmental Obligations) ASC 410-20-25-8b (Asset Retirement and Environmental Obligations) ASC 410-20-25-5 (Asset Retirement and Environmental Obligations) ASC 410-20-25-7 (Asset Retirement and Environmental Obligations) ASC 410-20-25-13 (Asset Retirement and Environmental Obligations)
Premium Asset Law Obligation
lease payments under the minimum-lease-payments criterion in paragraph 840-10-25-1(d) from the perspective of the lessee and the lessor. Lease payments that depend on a factor directly related to the future use of the leased property‚ such as machine hours of use or sales volume during the lease term‚ are contingent rentals and‚ accordingly‚ are excluded from minimum lease payments in their entirety. (Example 6 [see paragraph 840-10-55-38] illustrates this guidance.) However‚ lease payments that depend
Premium Lease Finance lease
lessor. Applicable Professional Pronouncements ASC 845: APB Opinion No. 29‚ Accounting for Nonmonetary Transactions (Opinion 29) ASC 840: FASB Statement No. 13‚ Accounting for Leases (Statement 13) FASB Technical Bulletin No. 88-1‚ Issues Relating to Accounting for Leases (Technical Bulletin 88-1) 09-2 Pharmagen . Answer the questions that are given below‚ not as given in the case text. Applicable Professional Pronouncements •ASC 470-10-25-1 through 25-2‚ Debt: Overall: Recognition
Premium Contract Finance
is secured by the direct lease. Eliminating any question or doubt about the ability to cover the lease is the ultimate goal. If you would prefer to go with the Capital lease option then it must meet one of the four criteria according to FASB ASC 840-10-25-1. There has to be a transfer of ownership to the lessee by the end of the lease term‚ the lease contains a bargain purchase option‚ the lease term is equal to 75% or more of the estimated economic life of the leased property‚ or the present
Premium Lease Leasing
and efficiently. Specifically‚ students will be able to: Understand the application of the guidance in ASC 605-25‚ as amended by ASU 2009-13‚ to complex multiple-deliverable arrangements. Understand the application of the guidance in SAB Topic 13. A p p l i c a b l e P r of essi on a l P r onou n c e m e n ts ASC 605-25‚ Revenue Re cogni t ion : Mul t ipl e- E l ement A r r angements (ASC 605-25) (formerly EITF Issue No. 00-21‚ Revenue Arrangements With Multiple Deliverables (Issue 00-21))
Premium Copyright All rights reserved