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 information must
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Case study ULC operates different types of lease in Bangladesh. In our report‚ we focus on purchase order type of lease conducted by ULC. Generally there are three party involved in a purchase order lease. They are- • The leasing company • The borrower • Vendor In our report‚ these parties are- • United leasing company • Apollo Hospital Ltd • Siemens Therefore‚ here Apollo hospital ltd is the borrower and siemens is the vendor. Now we will discuss the steps of the process of purchase
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ACCOUNTING FOR LEASES IFRS questions are available at the end of this chapter. TRUE-FALSe—Conceptual Answer No. Description T 1. Benefits of leasing. F 2. Accounting for long-term leases. F 3. Classifying lease containing purchase option. T 4. Accounting for executory costs. F 5. Depreciating a capitalized asset. F 6. Lessee recording of interest expense. T 7. Benefit of leasing to lessor. F 8. Distinction between direct-financing and sales-type leases. F 9. Lessors’ classification
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several advantages of leasing property instead of owning. The company is protected against obsolescence and can receive 100% financing with less cost‚ fixed payments‚ and more flexibility (Schroeder‚ Clark‚ & Cathey‚ 2011). The new business opportunity for the client will require 20 more trucks than XYZ Trucking Inc. currently owns. The FASB issued SFAS No. 13‚ “Accounting for Leases” to establish standards of financial accounting and reporting for the lessees and lessors. The three leasing
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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
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whereas fee based services of NBFCs include bill discounting‚ portfolio management and other advisory services. LEASE FINANCING Leasing as financial service is a contractual agreement where the owner (lessor) of equipment transfers the right to use the equipment to the user (lessee) for an‚ agreed period of time in return for a rental. At the end of the lease period the asset reverts back to the lessor unless there is a provision for the renewal of the contract or there is a provision
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achieve this goal‚ direct and/or indirect investment. By investigating the different investment possibilities they want to understand the merits and demerits‚ including risk and return of the possible investments. Bearing these outcomes in mind‚ they can form a new strategy for the company. We will discuss 4 different subjects as stated in the assignment: * The merits and demerits of direct real estate investing are highlighted; * The potential benefits for LL of allocating its assets to indirect
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What is a lease? A lease is a contractual arrangement where the lessor grants the lessee the right to use an asset in return for periodical rental payments. While leasing of land‚ buildings‚ and animals has been known for a long time‚ the leasing of industrial equipment is a relatively recent phenomenon‚ particularly on the Indian scene. What are the Types of Leases Finance Lease v/s Operating Lease Finance Lease: The lease transfers ownership to the lessee before the lease expires The lessee
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Operating leases are similar to renting‚ while capital leases are more like a loan. Capital leases are where a lessor transfers all the risks and benefits of ownership for a property to the lessee. An operating lease does the opposite and does not transfer all the risks and benefits to the lessee. In addition to transferring risks and benefits‚ there are other qualifications to be classified as a capital lease. The lease must contain a bargain purchase option. It has to be equal to 75% or more of
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Money can buy you happiness. Discuss with references to the theory and some empirical evidence on the issue. The set point theory According to this theory‚the individual propensity to happiness is a personal trait of largely genetic origin and influenced by personality.The explanation for the stagnation of happiness is that happiness is a stochastic phenomenon.Chance distributes unequal amounts of happiness among people’s genetic codes ‚leaving the average level unchanged. The decreasing
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