Dealing with Operating Leases in Valuation Aswath Damodaran Stern School of Business 44 West Fourth Street New York‚ NY 10012 adamodar@stern.nyu.edu Abstract Most firm valuation models start with the after-tax operating income as a measure of the operating income on a firm and reduce it by the reinvestment rate to arrive at the free cash flow to the firm. Implicitly‚ we assume that the operating expenses do not include any financing expenses (such as interest expense on debt). While this assumption
Premium Expense Generally Accepted Accounting Principles Depreciation
1) What is Blockbuster’s amortization timetable? Do you think it is appropriate? Blockbuster’s amortization timetable is 40 years. This is not the industry standard and should be 5-7 years. 2) What would be the impact on Blockbuster’s 1988 earnings per share if 5 year amortization were applied to this goodwill? If the 5-year amortization were applied instead of the 40-year timetable‚ the company would have to recognize the goodwill in larger amounts‚ which would increase their tax liability. 3)
Premium Depreciation
| Lessee Ltd.- Lease Case | | | | | | 1. Was the junior accountant’s analysis correct? Why or why not? No‚ the junior accountant’s analysis is not correct in classifying the lease as an operating lease in accordance with IFRS. Whether or not a lease is classified as a finance or an operating lease depends on if all of the benefits as well as risks of ownership have been shifted from the lessor to the lessee. According to IAS 17-10(d)‚ a lease must be classified as a finance
Premium Finance lease Lease Interest
FINANCIAL ACCOUNTING DAC 601 TOPIC: ACCOUNTING FOR LEASES PRESENTED BY: Mbogo Stella Mumbi……………...……...…………….D61/60246/2013 Albert Kalute Maingi……………...……...…………….D61/62221/2013 PRESENTED TO: DR. KAMASARA TABLE OF CONTENTS: 1.0: INTRODUCTION……………………………………………………………………….. 3 1.1: Leasing………………………………………………………………………………….. 3 1.2: Definition of Terms…………………………………………………………………….. 3 1.3 Lease Classification………………………………………………………………………5 2.0: HISTORICAL
Premium Lease Finance lease Leasing
How does "To Build a Fire" illustrate the elements of naturalistic literature? Paragraph 1: Introduction--what is Naturalism? brief overview of short story‚ thesis statement (connection between Naturalism and story) Paragraph 2: State the first element of Naturalism as outlined in web inquiry: Characters whose attempts to control their own lives are usually thwarted by outside forces. Give a few examples of how the character in To Build a Fire fits this description. Paragraph 3: Second
Premium Nature Temperature 2006 albums
Residential Lease Agreement THIS LEASE (the "Lease") dated this 18th day of May‚ 2013 BETWEEN: _________________________ of ________________________________________________________________ (the "Landlord") OF THE FIRST PART * AND * ____________________________________________________________________________________________________________________________________ (collectively and individually the "Tenant") OF THE SECOND PART IN CONSIDERATION OF the Landlord leasing certain premises
Premium Leasehold estate Renting Rental agreement
“To Build a Fire” Essay Humanity is just a part of nature; if it ceased to exist everything would go on as if it never did exist. Nature’s uncaring for humanity is displayed in Jack London’s “To Build a Fire” with the man and nature not doing anything to help him survive. This is shown in “To Build a Fire” when the man fell in the ice‚ tried to start a fire for the second time‚ and when he freezes to death. Nature did not help the man when he fell in the ice‚ it simply did not freeze the water
Premium Food preservation Snow
in our lease that states that we receive a check back from our landlord‚ in the amount of $400.00 every four months. This money we get back is compensation for the upkeep of the land surrounding the house. We take care of the yard clean-up‚ and the landlord refunds us three times a year. III. Is there a cancellation provision; and‚ if so‚ is it for one or both sides of the contract? Yes. There are two provisions in our lease contract that state (1) it allows the landlord to break the lease upon sale
Premium Renting Leasehold estate Contract law
The book “To Build a Fire” by Jack London is a short story that embodies the idea of naturalism. Naturalism utilizes the environment to show how apathetic this world can be.In the book it reveals that if you are not careful when you are making your decisions you will die and in addition to that London wrote it to also demonstrate on how humans can sometimes depend on nothing but themselves to survive. This short story took place in the Arctic. In the book‚ the newcomer decided to
Premium Yukon Klondike Gold Rush Thought
“To Build a Fire” Theme Analysis Behold‚ how great a matter a little fire kindleth! -New Testament: James 3:5 “To Build a Fire” is a short story written by Jack London. This story was originally published in 1902‚ with the famous version being published in 1908. When London was a student at the University of California‚ Berkeley‚ he had discovered the name of his biological father and wrote to him in an attempt to establish a relationship. His letter was returned with
Premium Yukon Fiction