...Response to Client Request 1 Tiffaney Brown ACC/541 November 30, 2015 Kenneth Burton Memorandum To: | Jane Phoenix, supervisor | From: | Tiffaney Brown | Date: | November 30, 2015 | Re: | FASB research results | | | As you requested, I have completed the research on the lease types and lease structure issues on the Financial Accounting Standards Board (FASB) website for the Lone Star Trucking Company. I did specific research on direct financing, sales type, and operating leases. After going over the information I have, I will provide you my recommendation for handling the client’s situation According to the FASB, both the client and the client’s potential new customer need to determine if their arrangement will meet one or more of these four criteria: 1. Transfer of ownership – the potential lease will transfer ownership of the property to the lessee at the end of the designated lease term (fasb.org). The client will have met this criterion if the lease agreement provides for the transfer of title at or shortly after the end of the lease term. Usually, there is a nominal fee that is required by statutory regulation to transfer title. 2. Bargain purchase option – the potential lease will contain a bargain purchase option, where the lessee will have the option to purchase the asset for a percentage less than the fair market value (fasb.org). 3. Lease term - the potential lease term is equal to 75 percent or more of the estimated economic life of...
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...Response to Client Request I Sharad Prabhakar ACC 541/Accounting theory and research January 17, 2011 Heber Howard Memo To: Mr. Supervisor From: Sharad Prabhakar Date: January 17th, 2011 Re: ABC Trucking Co. assignment results Message: These are the results of the assignment given to me by you last week regarding ABC Trucking company potential new client. I have done the required research on the Financial Accounting Standards Board (FASB) website regarding lease structures and current practices as it would relate to the specific issue at hand with ABC Trucking. All my research has shown that leasing would be an optimum option for the company to consider when leasing the extra trucks according to the requirement of the new potential client. Some of the benefits of leasing are that they will be able to finance all of the cost of the additional trucks without having to use of their own cash, they will be able to keep the trucks off their balance sheet if they choose an operating lease, and a lease will protect them when the trucks will became old and obsolete. Basically, there are two types of leases that ABC Trucking can choose from, below is a brief description and requirements of each: 1. Capital Lease: this is when the agreement for the lease is designed for the lessee acquires the assets and the end of the lease. From ABC Trucking’s perspective, they will be entering into a capital lease if it meets any one of the following four conditions as in...
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...Response to Client Request I Erica R Ford ACC/541 October 7, 2013 Professor Michael Meyer Response to Client Request I Memorandum October 7, 2013 To: Raelynn Floyd, Supervisor of Standards From: Erica Ford, CPA Re: FASB Lease Structures and types As per your request I have diligently conducted research to advise our clients of the best leasing option in regards to their current business proposition. Recently, I was informed last week of the new venture and the need to acquire 20 additional trailers to satisfy a job. The deal has a potential to be lucrative, therefore we must consider what leasing structure will work best for the client. The best sources to obtain information on leasing requirements and reporting is the FASB, Financial Accounting Standards Board. There are three components of leasing that I will discuss, directing financing, sales type and operating lease. Furthermore, I will make a recommendation based on the findings and current market conditions. Direct Financing Under the direct financing method, the lessor is essentially viewed as the lending institution for revenue recognition purposes (Schroder, Clark & Cathey). Direct financing is also considered a capital lease if it meets the criterion. To be classified as a direct financing lease the lease must meet one of the four following criteria set forth by SFAS No. 13: (1) the lease transfers ownership of the property to the lessee by the end of the lease term; (2) the...
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...Response to Client Request ACC/541 September 2, 2013 To: From: Subject: Lease Type and Lease Structure This memo includes research on leases and lease structure. Through intensive research on the Financial Accounting Standards Board (FASB), three sub-types of leases were found for lessors to account for the leases. The three sub-types are direct financing, sales-type, and operating leases. The international accounting standards board (IASB) and FASB are proposing a draft for lease accounting. The critics are disputing some of the concerns with operating lease financial reporting. This memo will address the proposal changes for operating leases. Also included is a lease type recommendation for the client. According to FASB ASC 840-30-05-4 (2009), lease capitalization includes direct financing and sales-type leases. These types of leases are recognizable by meeting one of the four criteria’s. A lessee under the capital lease method recognizes the lease according to FASB ASC 840-30-25-1 (2009), as an asset and as a commitment. The lessee accounts for the lease commitment in accordance to FASB ASC 840-30-30-1 (2009), at inception when the amount is equal to the present value (PV). In addition, the lease term will exclude the payment portion that represents specific cost such as insurance, maintenance, and taxes. For capital leases, a lessee recognizes lease assets and liabilities on the balance sheet (FASB, 2013). The lessee will...
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...Brett Baker NT1430 Research Paper In this paper I am going to tell you about IPv6 and IPv4. Also going to let you know aout DHCP and a sample configuration for DCHP. We will look at the differences and the similarities between IPv6 and IPv4. Also will be looking at how DHCP can be configured in Linux. In the next couple paragraphs, you will see these listed. IPv4 is the fourth version of Internet protocol which uses 32 bit addressing whereas IPv6 is a next generation internet protocol which uses 128 bits addressing. IPv4 allows 4,294,967,296 unique addresses whereas IPv6 can hold 340-undecillion unique IP addresses. IPv4 address notation: 239.255.255.255, 255.255.255.0. IPv6 addresses are denoted by eight groups of hexadecimal quartets separated by colons in between them. An example of a valid IPv6 address: 2001:cdba:0000:0000:0000:0000:3257:9652. (http://tianrunhe.wordpress.com/2012/04/25/compare-and-contrast-ipv4-and-ipv6/) When a DHCP client system connects to the network, dhclient requests a lease from the DHCP server and configures the client's network interface(s). Once a DHCP client has requested and established a lease, it stores information about the lease in a file nameddhclient.leases, which is stored in the /var/lib/dhclient directory. This information is used to reestablish a lease when either the server or the client needs to reboot. The DHCP client configuration file, /etc/dhclient.conf, is required only for custom configurations. The following dhclient...
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...Response to Client Request I ACC/541 To: Regional Trucking Company From: The Consulting Group In Re: Leases and Lease Structures A company wants information about leases and lease structures in the FASB codification required by the supervisor in response to the request of the client. The client is a regional trucking company. The company owns one hundred trailers 20 less than the requirement to take a new job proposal. The opportunity offers new growth, the doubt about the duration of the work is unclear and the client needs advice about whether to buy or lease the extra trailers needed to complete the job. The paper will give the outcome of the research completed on the lease and lease structures in the FASB codification required by the supervisor in response to the request of a client. The codifications of the Financial Accounting Standards Boards give substance to different lease structures and the terms and conditions for lease transactions. The statement of financial accounting standards (SFAS) speaks of different lease structures. SFAS Number 13 discusses the categorization of various principles about lease structures to capital leases and operating leases. The capital leases are leases in which the benefits and the risks pass to the lessee. “A lease is considered a sales type lease when the manufacturer or dealer’s profit or loss implies that the leased item is considered inventory and the seller or the lessor is earning a profit on the...
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...Subject: FASB Research Results and Recommendations The Financial Accounting Standards Board (FASB) website offers information on many accounting subjects. Per your request I have researched the FASB website for information on leases and lease structure issues, in particular the current practices and thought related to direct financing, sales type, and operating leases. The following is a brief explanation of the results and also a recommendation of an approach that the client can use to evaluate and capitalize on the opportunity of adding the new customer. The FASB has outlined certain criteria for classifying leases as either capital leases or operating leases. In SFAS No. 13 the criteria for classifying a lease as a capital lease are; the lease transfers ownership, the lease contains a bargain purchase option, the lease term is equal to 75 percent or more of the estimated remaining economic life, and at the beginning of the lease term the present value of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property less any related investment tax credit retained by the lessor (Schroeder, Clark, & Cathey, 2011). The lease only has to meet one of those criteria to be a capital lease. If none of these criteria are met then the lease is classified as an operating lease. Leases can also be classified as a sales type lease or a direct financing lease. For a lease to be classified as a sales type or direct financing lease the lease would have to...
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...Assignment 9. Research Paper Introduction to IPv4 & IPv6 IPv4 is the fourth version of Internet protocol which uses 32 bit addressing whereas IPv6 is a next generation internet protocol which uses 128 bits addressing. 32 bits long (4 bytes). IPv4 is a classful logical addressing scheme using three primary address classes: Class A, Class B, and Class C. The class of the address is determined by the first number in the IP address. The total number of IPv4 addresses is 4, 294, 967,296. Address type: Unicast, multicast, and broadcast. IPv4 expressed in dotted decimal notation. The new concepts and new implementation of old concepts in IPv6 include the following: * Larger address space (128-bit vs. 32-bit) * Autoconfiguration of Internet-accessible addresses with or without DHCP (without DHCP it’s called stateless autoconfiguration) * More efficient IP header (fewer fields and no checksum) IPv4 allows 4,294,967,296 unique addresses whereas IPv6 can hold 340-undecillion (34, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000) unique IP addresses. 128 bits long (16 bytes). Basic architecture is 64 bits for the network number and 64 bits for the host number. Often, the host portion of an IPv6 address (or part of it) will be a MAC address or other interface identifier. Address type: Unicast, multicast, and broadcast and anycast. IPv6 expressed in colon hexadecimal notation. DHCP servers in Linux can be configured to use IPv6: * Step 1: configure...
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... Yoga is growing trend in health and fitness industry and Menon’s Yoga centre will teach both traditional and unique styles of Yoga classes. This blend of styles draws more customers than typical studios attract. By capitalizing on this strength, we are in unique position to create nationally recognized style of teaching and recognized brand. The primary objective is to open a flagship centre that will draw clients from other local studios. Franchise additional studios under the Menon’s Yoga Centre brand, will establish our unique system of yoga training as branded system. The objective to open our first local studio, train teachers in our methodology create branded retail products then expand our unique yoga fitness system into recognizable market culture. The second step is to train teachers and staff. The Mission Statement Menon’s Yoga Centre, LLC, is dedicated to promoting healthier living and reduced stress through yoga and meditation classes and massage therapy. Classes are offered morning afternoon and evening seven days week to accommodate all of our clients' schedules. The Centre will be open daily from 8 a.m. to 8 p.m. Massage therapy meditation classes and private classes will be offered as contracted services and scheduled by appointment. One full time employee will be the business manager and responsible for the day to day operations, accounting sales marketing and future business development. Experienced yoga students tend to try new studios teachers...
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...backdrop of such scenario, leasing companies came forward in the 80s to serving as an alternative source of financing. Leasing is now a growing industry in many developing countries as well as Bangladesh. In spite of sluggish economic activities the growth of the leasing industry is significant. Lease is a contract between the owner and the user of assets for a certain time period during which the second party uses an asset in exchange of making periodic rental payments to the first party without purchasing it. Under lease financing, the lessee regularly pays the fixed lease rent over a period of time at the beginning or at the end of a month, 3 months, 6 months or a year. At the end of the lease contract the asset reverts to the real owner. Leasing is an important new method of financing. Non-Bank Financial Institutions (NBFIs) play a significant role in meeting the diverse lease financial need of various sectors of an economy and thus contribute to the economic development of the country as well as to the deepening of the country’s financial system. Lease firms play a role analogous to that of banks and other financial institutions, but act by buying and then leasing equipment to their clients rather than loaning money to buy it. There have been two principal reasons which contributed to the development of...
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...stock exchange. But these sources are not enough to effectively meet the growing demand of capital investments for industrialization of the country. And the backdrop of such scenario, leasing companies came forward in the 80s to serving as an alternative source of financing. Leasing is now a growing industry in many developing countries as well as Bangladesh. In spite of sluggish economic activities the growth of the leasing industry is significant. Lease is a contract between the owner and the user of assets for a certain time period during which the second party uses an asset in exchange of making periodic rental payments to the first party without purchasing it. Under lease financing, the lessee regularly pays the fixed lease rent over a period of time at the beginning or at the end of a month, 3 months, 6 months or a year. At the end of the lease contract the asset reverts to the real owner. Leasing is an important new method of financing. Non-Bank Financial Institutions (NBFIs) play a significant role in meeting the diverse lease financial need of various sectors of an economy and thus contribute to the economic development of the...
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...COMMERCIAL INVESTMENT PROPERTY: VA L U AT I O N METHODS An Information Paper ACKNOWLEDGEMNTS: The Publisher would like to express its thanks to Estates Gazette, the South Bank University and Jones Lang Wooten for permission to reproduce definitions taken from The Glossary of Property Terms (Estated Gazette, 1989). Please note: References to the masculine include, where appropriate, the feminine. Published by RICS Business Services Limited, a wholly owned subsidiary of The Royal Institution of Chartered Surveyors, under the RICS Books imprint Surveyor Court Westwood Business Park Coventry CV4 8JE UK No responsibility for loss occasioned to any person acting or refraining from action as a result of the material included in this publication can be accepted by the author or publisher. ISBN 0 85406 802 3 © RICS May 1997. Copyright in all or part of this publication rests with the RICS, and save by prior consent of the RICS, no part or parts shall be reproduced by any means electronic, mechanical, photocopying, recording or otherwise, now known or to be devised. Reprinted 2001 Printed by Quorn Litho Contents Information Papers Executive Summary Preface 1 1.1 1.2 1 .3 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 3.5 4 4.1 4.2 4.3 4.4 5 5.1 5.2 6 6.1 6.2 6.3 7 7.1 7.2 7.3 8 8.1 8.2 8.3 4 5 7 Valuation and Calculation of Worth A discussion of the role of the valuer and the distinction between valuation, appraisal...
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...Table of Contents Table of Contents…………………………………………………………………………………..page 2 Introduction…………………………………………………………………………………………..page 3 Amortization and Depreciation………………………………………………….…………..page 3-4 Intangible Assets………………………………………………………………………..………….page 4-5 Goodwill……………………………………………………………………………………………..….page 5-6 Impairment…………………………………………………………………………………………….page 6 Liabilities………………………………………………………………………………………………..page 6-7 Interest and Bonds…………………………………………………………………………………page 7-8 Leases…………………………………………………………………………………………………….page 8 Works Cited……………………………………………………………………………………………page 9 Dell Inc: A Major Competitor in the Computer Business Introduction Dell is a global information technology company that offers its customers a broad range of solutions and services delivered directly by Dell and through other distribution channels. They are focused on providing technology solutions that are more efficient, more accessible, and easier to manage. Dell built its reputation as a leading technology provider through listening to customers and developing solutions that meet customer needs. A few years ago, they initiated a broad transformation of the company to become an end-to-end technology solutions company. Amortization and Depreciation In 2010, Dell’s Property, Plant, and Equipment (PP&E) was $2,181 million; the following year it plummeted to $1,953 million and then rebounded back to $2,124 million in 2012. With having PP&E, Dell has to account for the PP&E’s...
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...0709 Non-Bank Financial Institutions in Bangladesh: An Analytical Review Md. Nehal Ahmed Mainul Islam Chowdhury March 2007 Policy Analysis Unit (PAU) Research Department, Bangladesh Bank Head Office, Dhaka, Bangladesh (www.bangladeshbank.org.bd) (www.bangladesh-bank.org) Policy Analysis Unit* (PAU) Working Paper Series: WP 0709 Non-Bank Financial Institutions in Bangladesh: An Analytical Review Md. Nehal Ahmed Mainul Islam Chowdhury Research Economist Policy Analysis Unit Research Department Bangladesh Bank March 2007 Copyright © 2007 by Bangladesh Bank * In an attempt to upgrade the capacity for research and policy analysis at Bangladesh Bank (BB), PAU prepares and publishes several Working Papers on macroeconomic research every quarter. These papers reflect research in progress, and as such comments are most welcome. It is anticipated that a majority of these papers will eventually be published in learned journals after the due review process. Neither the Board of Directors nor the management of BB or any agency of the Government of Bangladesh, however, necessarily endorses any or all of the views expressed in these Papers. The latter reflect views based on professional analysis carried out by the research staff of Bangladesh Bank, and hence the usual caveat as to the veracity of research reports applies. [An electronic version of this paper is available at www.bangladeshbank.org.bd] Non-Bank Financial Institutions in Bangladesh: An Analytical...
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...Chapter 17 Audit ing the Investing and Financing Cycle |Learning Check | 17-1. Investing activities represent the purchase and sale of land, buildings, equipment, and other assets not generally held for resale. In addition, investing activities include the purchase and sale of financial instruments not intended for trading purposes (discussed in chapter 18). Financing activities include transactions and events whereby cash is obtained from or repaid to creditors (debt financing) or owners (equity financing). Financing activities would include, for example, acquiring debt, capital leases, issuing bonds, or issuing preferred or common stock. Financing activities would also include payments to retire debt, reacquiring stock (treasury stock), and the payment of dividends. 17-2. When auditing the investing and financing cycles auditors typically address the following issues: • What assets are necessary to support the operations of the entity, and what are management’s long-range plans for growing the entity’s asset base? Answering this question assists the auditor in developing expectations of long-term assets needed to support operations. • What assets were acquired, or disposed of, during the period? Answering this question confirms the auditor’s expectations regarding assets needed to operate effectively. It also assists the auditor in developing expectations of regarding financing activities. • How were newly acquired assets...
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