...The Four Musicians of Bremen In the story a donkey, a dog, a cat, and a rooster, all past their prime years in life and usefulness on their respective farms, were soon to be discarded or mistreated by their masters. One by one they leave their homes and set out together. They decide to go to Bremen, known for its freedom, to live without owners and become musicians there. On the way to Bremen, they see a lighted cottage; they look inside and see four robbers enjoying their ill-gotten gains. Standing on each others backs, they decide to perform for the men in hope of gaining food. Their 'music' has an unanticipated effect; the men run for their lives, not knowing what the strange sound is. The animals take possession of the house, eat a good meal, and settle in for the evening. Later that night, the robbers return and send one of their members in to investigate. It is dark and he sees the eyes of the Cat shining in the darkness. He reaches over to light his candle, thinking he sees the coals of the fire. Things happen in quick succession; the Cat swipes his face with her claws, the Donkey picks up his hooves and kicks him, the Dog bites him on the leg, and the Rooster crows and chases him out the door, screaming. He tells his companions that he was beset by a horrible witch who scratched him with her long fingers (the Cat), a man with a knife (the Dog), a monster who had hit him with a club (the Donkey), and worst of all, the devil who screamed from the rooftop (the Rooster)...
Words: 2251 - Pages: 10
...Destination: LAUNDROMAT Clue card reads:It doesn’t take LOADS of brains for this place to be found,Though this clue might take you round and round.Driving down Maple St this place can be seen,You will go in feeling dirty, but come out feeling clean. | | The answer is a laundry mat located on Maple Street, of course you’ll replace the street name with the one in your own town. Before the party talk to the owner and ask if you can use one dryer for a few hours. If they agree, collect a bunch of funky clothes to have waiting for the teams in the dryer when they arrive. You can put together your own set of funky clothes. We used 3 pair of extra large sweat pants, 5 goofy extra large shirts, 1 sweater, 2 knitted winter hat, 1 baseball cap, 2 scarves, and a pair of thick gloves. Have the challenge details card taped to the outside of the dryer door so they know what they are looking for. On the note they will find the challenge: Each player must put on all of the articles in this dryer AT ONCE and have their picture taken. When everyone is finished with the task your team will receive the next clue. DETOUR!! Detour clue card reads:You are on your way to winning this race,Hopefully this detour won’t slow your pace.From two challenges you must choose,Make sure to choose wisely and you can’t lose! | | The challenge details read: Ok players, here are the two challenges, remember you only have to complete one. You also have the option of changing your mind at any point and...
Words: 329 - Pages: 2
...Uptown Plaza will be greater than the current offer if you wait until the lease renewals for the tenants in question are in place (see Appendix A). The below assessment summarizes the downside, but more importantly in this case, upside risk of waiting to sell rather than accepting the current offer. There are 3 key factors that drive the present commercial value of the shopping centre – the probability of renewal, the renewed rental amount, and the probability of a new tenant in the event of non-renewal. Other factors include variability in monthly operating costs and future interest rates i.e., impact on cap rate. It is important that each factor be assessed individually at a tenant level, rather than applying averages which may mask key drivers. In the “base” case, where the assumed probabilities of lease renewal and new tenant are taken and fair market rental rates are assumed, the present value of Uptown Plaza is $23,844,000. This assumes a 9% cap rate and a 0.5% monthly increase in operating costs. Additionally, when In a “conservative” scenario, where all tenants are renewed at TriDev’s minimum acceptable rent increase, the valuation is still higher than the current offer ($23,226,000). However, due to the high probability of renewal amongst the 4 larger tenants (>90%), assuming fair market rent increases is reasonable. Only in a “worst case” scenario, that further assumes a 10% cap rate and a plus 10% variance on operating cost increases, does the valuation...
Words: 620 - Pages: 3
...Law 434 Business Skills for Real Estate Lawyers Professor Habibi 3/2/2015 Case Study: South Park IV 1. Considering the recent upward trend of employment, the downward trend of vacancies in the area for industrial properties, the relatively good terms being offered for financing, and the recent upward trend of oil prices, I believe that this would be a good property for Laflin to acquire. 2. Laflin’s assumptions: vacancy rate of 5%, management fee of 4%, he needs only $15,000 for structural reserves, there will be no closing costs, and most importantly that either the current tenants will extend their leases for the same rates that they are currently being charged or that he will be able to re-rent the property for the current rate. His last assumption is incorrect, however, because the tenants indicated to him that they would only extend their leases if Laflin actually reduced their rents to $2 per square foot which would drop gross potential rents to $160,000. His vacancy rate seems very low as well considering the fact the average vacancy rate for Houston in 1989 was 13% and was much higher the previous few years. The management fee of 4% appears accurate as management fees typically range from 3-5%. However, his assumption that he would need only $15,000 for structural reserves seems rather low. Since current monthly rents are about $16,666, his structural reserves wouldn’t even be enough for one month’s rent. If it were me, I would have at least 2-3 month’s...
Words: 1148 - Pages: 5
...CITY UNIVERSITY OF HONG KONG School of Law LW3607A Land Law I Semester A, 2012/13 Topic 13 – Government Leases and Conditions Part 1 - Introduction Virtually all land in Hong Kong is held under the Government Lease. A lessee has exclusive possession of the leased land for a fixed duration. The leasehold system gives the Hong Kong Government a high degree of control over the way in which land is developed and used through covenants imposed on the grantee in the Lease. [pic] The Hong Kong Reunification Ordinance This came into effect on 1 July 1997. Under this Ordinance, the term “Crown” becomes “Government”. The Crown Lease becomes the Government Lease and the Crown rent becomes Government rent. All land in Hong Kong became the property of the People’s Republic of China but the HKSAR Government is responsible for its management, use, development and leasing. See Article 7 of the Basic Law. The titles of several Ordinances have been changed by the Adaptation of Laws (Interpretative Provisions) Ordinance, Ord No. 29 of 1998. Part 2 - Land Surveys, Land Boundaries and the Demarcation of Land Under the Land Survey Ordinance 1995 (Cap 473), a plan must be drawn up by an authorised land surveyor whenever the land is divided by way of sectioning or subdivision. The plan must be registered and a copy deposited with the Land Survey Authority. Land is divided into lots, e.g. Inland lots, Marine Lots, Rural Building lots. In the New Territories...
Words: 15241 - Pages: 61
...Build-A-Bear Case – Lease a. Companies lease assets rather than by them because the company might need the asset for only a short period of time. The company might also not want to report an asset or liability or the company simply might not have enough cash to buy the asset. In addition, the company also might have difficulty getting a loan to finance the purchase. b. An operating lease is very similar to a rental agreement. The company does not have ownership of the asset and all the risk and benefits of ownership stay with the lessor. The lessor only transfers the right to use the asset. A lease is considered a capital lease if it meets the following rules: 1) lease life must be greater than 75% of the life of the asset 2) transfer of ownership at the end of the lease term 3) bargain purchase at end of lease term 4) present value of minimum lease payments exceeds 90% of the FMV of the asset A direct financing lease is is defined as a lease where the present value of the lease payments is equal to the cost of the asset. The lessor does not report a gain/loss at the beginning of the lease, but earns interest revenues. A sales type lease is a lease where the present value of the lease payments is greater than the cost of the asset. The lessor records a profit at the beginning of the lease and also earns interest revenue. c. As discussed above, all leases are not the same. Hence, the need to distinguish between different types of leases. Under a capital...
Words: 711 - Pages: 3
...Company Car Policy 1. Objective The new Company Car Policy has been formulated in order to introduce an employee friendly and easy to administer car scheme in the company with effect from -----------. With the introduction of this scheme all previous car schemes stand withdrawn. 2. Scope Employees in Grade M1 and above are entitled to participate in this scheme. These employees have been assigned Management Allowance / Car Kitty as part of their remuneration package. Their Management Allowance / Annual Car Kitty amount is given in the table included herein below. |(A) |(B) |(C) |(D) |(E) | | | | | | | |Grade |Car Kitty Amt. (p.a.)* |Mgmt. Allow. (p.m.) |Addnl. Car Kitty (p.a.)* |Max. Car Kitty Amt. (p.a.)* | | | | | | | | |Rs. |Rs. |Rs. |Rs. | |M5 |240,000 |20,000 |60,000 |300,000 | |M4 |195,000 |16,250 |45,000 |240,000 ...
Words: 3243 - Pages: 13
...GLOBAL AVIATION GROUP 2013 Airline Disclosures Handbook Financial reporting and management trends in the global aviation industry kpmg.com KPMG’s Global Aviation practice KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 156 countries and have 152,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Through its member firms, KPMG has invested extensively in developing an experienced aviation team. KPMG’s understanding of the aviation industry is both current and forward looking, thanks to KPMG’s global experience, knowledge sharing, industry training and use of professionals with direct experience in the aviation industry. KPMG member firms serve many of the market leaders within the airline sector. We are leading providers of external audit services with 33% market share of the top 50 airlines by revenue. We also provide other services to over half of these top 50 airlines. KPMG member firms’ strength lies in our professionals and their knowledge and experience gathered from working with a large and diverse client base. KPMG’s airline industry experience helps the teams understand both your business priorities and the strategic issues facing your company. KPMG’s Global Aviation practice’s presence in many international markets, combined with industry knowledge, positions KPMG...
Words: 11825 - Pages: 48
...Proposed Accounting Standards Update (Revised) Issued: May 16, 2013 Comments Due: September 13, 2013 Leases (Topic 842) a revision of the 2010 proposed FASB Accounting Standards Update, Leases (Topic 840) This Exposure Draft of a proposed Accounting Standards Update of Topic 842 is issued by the Board for public comment. Comments can be provided using the electronic feedback form available on the FASB website. Written comments should be addressed to: Technical Director File Reference No. 2013-270 The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. An Accounting Standards Update is not authoritative; rather, it is a document that communicates how the Accounting Standards Codification is being amended. It also provides other information to help a user of GAAP understand how and why GAAP is changing and when the changes will be effective. Notice to Recipients of This Exposure Draft of a Proposed Accounting Standards Update The Board invites comments on all matters in this Exposure Draft and is requesting comments by September 13, 2013. Interested parties may submit comments in one of three ways: Using the electronic feedback form available on the FASB website at Exposure Documents Open for Comment Emailing a written letter to director@fasb.org, File Reference No. 2013270 Sending written comments to ―Technical Director, File Reference...
Words: 126823 - Pages: 508
...EXPS = CAPITAL EXPENDITURES Claim of Capital Allowance Capital allowance is allowed to be claimed by a company for any Fixed assets owned by that company. Any disposal of the FAs is subjected to either Balancing Charge or Balancing Allowance Disposal Price | 500,000 | 200,000 | Less: Residual Expenditure | (300,000) | (300,000) | Balancing Charge | 200,000 | | Balancing Allowance | | (100,000) | Adjusted Income / loss | 1,000,000/ nil | Add: Balancing Charge | 200,000 | Less: Balancing Allowance | (100,000) | Statutory Income | 1100,000 / 200.000 | METHOD OF FINANCING ASSETS Hire Purchase = CA Only Capital portion and deposit up to date of payment is considered as QE to calculate CA. Leasing Operating Lease The company is not treated as the owner of the machines, therefore unable to claim the capital allowances. Comparison...
Words: 660 - Pages: 3
...PROPERTY LAW Angela This situation is clear to see that Co- ownership is involved. There are two parties involved in this co- ownership; Brad and Angelina. We are looking to see the type of ownership they got into and at the end what will they be entitled to. There are two forms of co- ownership; Joint tenancy and Tenancy in common. The presumption of Joint tenancy is that the joint tenants own the entire property in question. The presumption of Tenancy in common is that the tenants own a share of the property in question. Joint tenancy will only be applicable if the test of the four unities is satisfied. Difference with tenancy in common is that you only need to satisfy the unity of possession. Unity of time means the tenants interest of the property must commence at the same time as other tenants. Possession means that the entire co – owned land is the tenants’ entitlement. Interest means interests held should be the same as the duration and time. Title means that tenants involved should be given a title from the same supplier. Again, we need to understand the sort of co-ownership we are dealing with here before advising the parties. There is a slight hope that we are dealing with joint tenancy as all four unities are present in this scenario. However, there are pros and cons of being a joint tenant, one of which is severance. One of the methods of...
Words: 2039 - Pages: 9
...Magnet Beauty leases all of its stores from the same lessor. They have determined that leasing makes more sense than buying properties. Describe the process that most companies undertake to make lease-versus-buy decisions. A company attempting to differentiate and decide between lease-versus-buy should first consider how long it plans to have the facility. This is an important point/factor when deciding between the two options because a company may opt to lease a facility, for instance, for a short time if the company is aware that it will move to a new location in the near future whereas a company will be more likely to purchase if the company knows that it will continue business in that location in the future. Another important factor is whether or not the company wishes to own the asset or simply use it for a certain period of time without being responsible for upkeep of the asset. We will see later that there is a distinction between capital and operating leases that touches on this concept. However, with purchasing of the asset there is no option of full ownership; as soon as you buy it you own. A company will also reflect on the concept of tax. If the asset is worth a lot of money then acquisition of this asset will have ramifications on taxable income. If you purchase the asset for instance then there will be less cash in the business therefore less taxable income at the end of the year whereas on the other hand if the asset is leased on an operating lease basis then the...
Words: 1283 - Pages: 6
...Astion Bhd. has a well financial control by they have prepare a huge amount of retain earning for future use. The company is not facing any financial problem in this moment. So we suggest some way for generating fund when this company running project which is over the amount of company retains earning. Those ways can different into 2 categories which are short term sources of finance and long term sources of finance. The first short term source of finance is debt factoring. Debt factoring a factoring company takes responsibility for collecting money relating to business’s invoices, and immediately pays that business part of the total amount owed on the invoices. End of the year of financial, the company Astion bhd. has RM 87665082 or 87million receivable at year 2012. By using debt factoring, company can immediately get a part of the total amount of receivable. The advantage are company can get the money immediately instead waiting receivable to pay. Company also enjoys the advantage such as reduce the rise of getting doubtful debt or bad debt. Getting money now is more relevant than future; it can generate more money to the company in the future. So the company can use this amount of money to invest in new project. The second short term sources of finance is bank overdraft. A bank overdraft is a limit on borrowing on a bank current account. With an overdraft the amount of borrowing may vary on a daily basis. Company can borrow money with bank to settle the payment which is...
Words: 680 - Pages: 3
...Company on January 1, 2013, enters into a five-year noncancelable lease, with four renewal options of one year each, for equipment having an estimated useful life of 10 years and a fair value to the lessor, Daly Corp., at the inception of the lease of $3,000,000. Krause's incremental borrowing rate is 8%. Krause uses the straight-line method to depreciate its assets. The lease contains the following provisions: 1. Rental payments of $219,000 including $19,000 for property taxes, payable at the beginning of each six-month period. 2. A termination penalty assuring renewal of the lease for a period of four years after expiration of the initial lease term. 3. An option allowing the lessor to extend the lease one year beyond the last renewal exercised by the lessee. 4. A guarantee by Krause Company that Daly Corp. will realize $100,000 from selling the asset at the expiration of the lease. However, the actual residual value is expected to be $60,000. Instructions (a) What kind of lease is this to Krause Company? (b) What should be considered the lease term? (c) What are the minimum lease payments? (d) What is the present value of the minimum lease payments? (PV factor for annuity due of 20 semi-annual payments at 8% annual rate, 14.13394; PV factor for amount due in 20 interest periods at 8% annual rate, .45639.) (Round to nearest dollar.) (e) What journal entries would Krause record during the first year of the lease? (Include an amortization schedule through 1/1/14 and round...
Words: 549 - Pages: 3
...Benefits of a Capital Lease December 3, 2012 MEMORANDUM TO: Trucking Company, Inc. FROM: Accountant DATE: December 3rd, 2012 SUBJECT: Benefits of a Capital Lease CC: John Smith, Supervisor In response to your request for more information on the topic of leases, I will explain the different aspects of leases to help you get a better understanding of the topic so that you may make an informed decision on which type of lease is best for your company. Capital Leases A capital lease emulates an installment purchase of an asset. This type of lease transfers the benefits and risks associated with ownership of an asset to the lessee (Schroeder, Clark, & Cathey, 2011). According to ASC 840-10-25 (FASB, 2009) (IAS 17), a lease must meet at least one of the following four criteria to be considered a capital lease: a. Ownership is transferred by the end of the lease agreement. b. There is a chance to purchase at a bargain price. c. The length of the lease is 75% or more of the assets life. d. The sum of the minimum payments, calculated at present value, exceed 90% of the assets fair value. Criteria c and d do not apply if the term of the lease begins in the final 25% of the assets useful life. Two Types of Capital Leases There are two types of capital leases concerning the lessor; direct financing and sales-type leases. For a capital lease to be considered a direct financing or sales-type lease, according to ASC 840-10-25 (FASB, 2009), both of the following...
Words: 1180 - Pages: 5
