today’s commuting times substantially. However‚ they are facing 3 different options for funding this new acquisition. One of the options is to issue new bonds and therefore borrow the money and purchase these trains. The second option is a leveraged lease proposed by Bank of New York Capital Funding. The final option is to rely on federal funding. Some of the assumptions facing this acquiring of the asset are that they will have a useful life of 25 years. The train sets will also have a residual
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INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES ACCOUNTING FOR ISLAMIC BANKS ACC 4561 SECTION 2 IJARAH 21ST DECEMBER 2012 PREPARED FOR: MDM. ROS ANIZA MOHD. SHARIFF PREPARED BY: GROUP 4 MOHAMAD SHAFIQ BIN MUSA NUR AIN BT MAZUPI NADHIRAH AZIDY NURUL NAJAT BT HALIM MUHAMMAD AYMAN BIN A YAZID (0824825) (0812550) (0933644) (0831108) (1011065) 0 ABSTRACT This paper is on the study of Ijarah Financing in Malaysia and Bahrain with the related
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TABLE OF CONTENTS EXECUTIVE SUMMARY…………………………………. Page 3 INTRODUCTION: CLASSIFICATION OF LEASES…………………………….................. Page 4 TREATMENT OF LEASES………………………………………………….. Page 5 NEW TREATMENT FOR LEASES: CLASSIFICATION OF LEASES……………………………………………. Page 6 MEASUREMENT……………………………………………………………… Page 6 LEASE LIABILITY………………………………………………………………. Page 6 SUBSEQUENT MEASUREMENT AND REASSESSMENT………. Page 7 PRESENTATION………………………………………………………………
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2012‚ All-In and Off-Book entered into an arrangement in which Off-Book will purchase land in a specific location and build a casino according to All-In’s specifications. Once the construction is complete (expected by January 1‚ 2014)‚ Off-Book will lease the casino to All-In. Although All-In provided the overall design and layout of the casino‚ Off-Book is responsible for all construction activities. The budgeted cost of constructing the casino is $60 million. Off-Book will pay all construction costs
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Existing lease accounting standards require lessees to classify their lease contracts as either finance (capital)* leases or operating leases. Finance leases are defined as those leases that transfer to the lessee substantially all the risks and rewards incidental to ownership of the leased asset. All other leases are operating leases. Leases classified as finance leases are treated as similar to a purchase of the underlying asset. Consequently‚ the lessee recognizes in its statement of financial
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Chapter 15 Leases AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools‚ departments‚ and faculty may approach assessment and its documentation differently‚ one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor‚ we have labeled each question‚ exercise‚ and problem in Intermediate Accounting‚ 7e‚ with the following AACSB learning skills:
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Chapter 3 Part 1 of 3 1) Identify and describe the two major sources of current liabilities. The two major source of liabilities‚ for both current and noncurrent liabilities‚ are operating and financing activities. Current liabilities of an operating nature—such as accounts payable and operating expense accruals—represent claims on resources from operating activities. Current liabilities such as notes payable‚ bonds‚ and the current maturities of long-term debt reflect claims on resources from financing
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applies IFRS – Leases equipment from Lessor Inc. – 3 years – No purchase or renewal options & equipment reverts back to Lessor when lease expires – Remaining useful life = 4 years – Guaranteed Residual Value of $20K Accountants Analysis Relevant Questions 1. Was the junior accountant’s analysis correct? Why or why not? 2. Was the senior accountant’s analysis correct? Why or why not? 3. How would the answer differ under U.S. GAAP? IFRS Analysis • IAS 17 – Financing and Operating Leases • Finance
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Letisha and Sudson Washer and Dryer Letisha signed a lease with a Sudson Washer and Dryer Representative that allowed her to lease a washer and dryer from the company for five years. At the end of the lease agreement‚ Letisha called to cancel‚ and found out that her lease agreement had been extended for three five year terms. Letisha was unaware that the contract had an automatic renewal clause. The Uniform Commercial Code section 2A defines a lease agreement‚ and it also explains how lessees and lessors
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Special Topics in Financial Accounting (ADM4348) University of Ottawa February 5th‚ 2015 Lease 1 – Security System Purchased by RFC by cash at a cost of $41‚347 on January 1‚ 20X1; Lease contract signed with Customer M on January 2‚ 20X1; Two year lease with payments of $11‚300 on January 2‚ 20X1 and January 2‚ 20X2; Lease is renewable for 1 year up to three times at a cost of $9‚300; At the end of the lease term‚ the security system reverts to RFC; If Customer M doesn’t renew‚ there is a $30‚000
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