...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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...Response to Client Request ACC 541 24, December 2012 Memorandum To: Supervisor From: Sarah Dixon Re: Leases and lease structure issues It has come to my attention of our client’s concern regarding the uncertain relationship with a customer who may potentially offer the company a significant growth benefit. The following memo will address the client’s concern and recommend a solution to the problem, giving a summary of several different types of leases. One of the most important issues here lies with understanding that the client’s main concern is trying to make as much profit as he possibly can for his regional trucking company. The opportunity offered to this client could potentially be very profitable if handled in the correct manner. The client has the option to either purchase twenty more trailers to accommodate this customer or use an alternative means of acquiring these assets known as leasing (Schroeder, 2011). I will explain leases and lease structure issues of several different types of leases including direct financing leases, sales type leases, and operating leases which could greatly benefit this client. A lease is a contractual agreement between the lessee, or the user, to pay the lessor, or the owner, for the use of an asset or services. Leases are classified under the Financial Accounting Standards Board (FASB) under the number 840. The lessee is the receiver of the services or assets under the lease agreement, and the lessor is the owner...
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...Running head: Response to Client Request I 1 Response to Client Request I Chris Merkel University of Phoenix Running head: Response to Client Request I 2 An arrangement that qualifies as a lease is an arrangement that conveys the right to use property, plant, or equipment if the arrangement conveys to the purchaser (lessee) the right to control the use of the underlying property, plant or equipment. The right control the use of the underlying property, plant, or equipment is conveyed if any of the following conditions is met: A. The purchaser has the ability or right to operate the property, plant, or equipment in a manner it determines while obtaining or controlling more than a minor amount of the output or other utility of the property, plant, or equipment. B. The purchaser has the ability or right to control physical access to the underlying property, plant, or equipment while obtaining or controlling more than a minor amount of the output or other utility of the property, plant, or equipment. C. Facts and circumstances indicate that it is remote that one or more parties other than the purchaser will take more than a minor amount of the output or other utility that will be produced or generated by the property, plant, or equipment during the term of the arrangement, and the price that the purchaser will pay for the output is neither...
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...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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...Explains how the impairment of the patent would be reflected on the financial statements in the event of losing a lawsuit - page 377 Response to Client Request II Week 4 Team A Names ACC/541 Date: MEMORANDUM TO: FROM: DATE: SUBJECT: Financial Implications of Pending Litigation ____________________________________________________________ __________________ Financial Implications The pending litigation has several implications for accurate financial reporting as established in the Generally Accepted Accounting Principles (GAAP). The immediate impact is the requirement for contingencies in the financial statements to report the potential that these statements will be restated to account for the outcome of the lawsuit. Pending the outcome of the lawsuit, the company may be required to reorganize their debts under a chapter 11 bankruptcy. The lawsuit also challenges the validity of a patent, which is a revenue generating asset of the client’s. Pending the outcome of the lawsuit, the patent will need to be tested for impairment. Reporting Requirements for Lawsuit Contingencies The implications for the lawsuit on the company financials depend upon the anticipated outcome of the lawsuit. If the anticipated outcome of the lawsuit is likely to result in a loss to the company, and that loss can be reasonably estimated, the loss should be accrued as estimated into the company financials, and noted as such, as detailed in the FASB Codification section...
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...Response to Client Request I ACC541 December 6, 2010 To: Supervisor From: Team B Date: December 6, 2010 Subject: Lease Structure & Lease Issues The company’s client, a trucking company, currently has 100 trailers. However, a new project requires the client to have 120 trailers. The relationship on the project is uncertain, which may affect the financial position of the client. The additional trailers needed for this project can be obtained through a lease option or by direct financing. In making the decision for a lease structure, the client needs to understand more about lease structure and issues with the FASB Codification. To get the benefits of lease the lease transaction should be structured according to the SFAS no. 98, which deals with the lease structure related to the transactions integral equipment and real estate. The SFAS no. 5 and 6 also describes the terms and conditions for lease transactions. Different types of lease structures exist, which can be used by the client company and the customer in making a lease agreement; these are as below – Sales Type Lease Under sales type lease, the lessee assumes all of the benefits and risks of ownership. The fair value and carrying value of the lease is different. According to Schroeder, Clark, & Cathey (2005), if a lease meets any of the four criteria set, plus both of the following criteria, then the lease should be a capital lease. “1. Collectibility of the minimum lease...
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...The purpose of this response is to determine the difference between direct finance leasing, sales-type leasing or an operating lease for Company ABC. To accomplish this, I will discuss a little background on all of the options and the advantages and disadvantages of a lease. This will aid company ABC in determining the best course of action for acquiring equipment in the future. First, what is a lease? “According to the Federal Accounting Standards Board (FASB), a lease is an agreement conveying the right to use property, plant, and equipment usually for a stated period of time” (Lee, 2003). Essentially a lease is an agreement between a lessee and lessor whereby the lessor “rents” their equipment to the lessee in return for a determined payment or series or payments over an agreed time period. SFAS No. 13 has specified criteria by which lease structures are classified into two basic types of leases, capital and operating leases. If all of the benefits and risk of ownership are transferred to the lessee, the FASB considers it to be a capital lease (Lee, 2003). The capital lease is then further classified in to a sales type lease and direct financing lease. A sales-type lease has a fair value amount different from its carrying amount (Lee, 2003). A sales-type lease can involve any type of property, plant and/or equipment. To be considered a capital lease it must do one of the following; (1) transfer of ownership to lessee, (2) option to purchase the property at a bargain price...
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...may be situations that may go wrong with RPC. A client will send a request; the server will execute the request and then return a response to the client. The possible appropriate semantics for server or network failures are listed as follows: 1. Endless waiting for the reply that will never come. This is a model of a regular procedure call. When a normal procedure goes into an infinite loop, the caller will not be able to find it out. 2. Time out and raise an exception or report failure to the client. Because finding an appropriate timer value is difficult. If the remote procedure takes a long time to execute, a timer might time-out too quickly. 3. Time out and retransmit the request. The final possibility seems the most reasonable; it may lead to problems. Let’s consider the following:...
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...Reverse engineering is basically going to previous files directory or parent file directory. The attacker will be able to develop a tool which will direct him to source files of webpage. Hence source code can be retrieved from server because of poor designing of application. 3) By knowing the software used by server from response packet, the attacker can launch different types of attack like denial of service, penetration of worm, etc. Attacker can also successfully access data from any file directory in server’s system. 4) HTTP request smuggling attack is used to bypass firewall or other gateways using proxies. In this attack the attacker parses the malicious data, URL or code with the legitimate HTTP packet so that this packet gets access like legitimate packets. 5) HTTP response splitting is an attack in which attacker sends request to server when user sends the request to the server so that server will transmit two response to the user. In this case attacker has control of second response and hence can exploit various attacks like cross-site scripting, web cache poisoning,...
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...client’s answers to interrogatories and requests for production of documents. Unfortunately, upon receipt of your discovery responses, I was disappointed to learn that many of your client’s responses appear to be unresponsive, evasive, and contain improper objections. Accordingly, please accept this letter as a good faith attempt to resolve this discovery dispute. As you know, the scope of permissible discovery as articulated in Md. Rule 2-402 is incredibly broad and permits Mr. Hamlet to discover any information that is “relevant to the subject matter involved in the action, whether it relates to the claim or defense of any other party [so long as] . . . the information sought appears reasonably calculated to lead to the discovery of admissible evidence.” Between your client’s answers to interrogatories and responses to requests for documents, you object fourteen (14) times on the grounds that the information sought is irrelevant. Md. Rule 2-402 expressly prohibits a party from unilaterally declaring that information irrelevant. Additionally, for the reasons stated below, many of the other six...
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...Objectives System is used to Manage Employees, In Recruitment process choose candidate, Project Management, Client Management at one place. Platform Web Application Front End .NET Framework 4.0 with VB Back End Microsoft SQL Server 2008 Tools Visual Studio 2010, Ajax Control Toolkit 4,Crystal Report 2008 Students Name Sona Patel (13084231201) Payal Patel (13084231170) Internal Guide Hiral R. Patel Developed By Sona Patel Payal Patel Existing System:• Existing system requires manual integration of data and management of different-different processes. • Company requires different systems for Human Resource Information management, Project management and client & Product management. • Searching and tracking of information becomes complex and time consuming. Need for New System:• The new system requires to integrate systems for Human Resource Information , Client management and Project management at one place. • It makes data manipulation of projects & employees easy and fast. Its Less time consuming and provide efficient searching. FUNCTIONAL SPECIFICATION:• User Specification: 1. Administrator 2. HR Manager 3. Recruitment Manager 4. Marketing Manager 5. Project Leader 6. Team Leader 7. Employees / Team Members Users Specification:1) Administrator:• • Administrator can create and manage clients, projects and users. Administrator can also allocate/change project manager and manage account. 2) HR...
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...transgressor; one who commits a fault or a crime; a culprit. Failing in duty; offending by neglect of duty. Asynchronous Completion Token The Asynchronous Completion Token design pattern efficiently dispatches processing actions within a client in response to the completion of asynchronous operations invoked by the client. Also Known As Active Demultiplexing [PRS+99] Example Consider a distributed Electronic Medical Imaging System (EMIS) [PHS96] consisting of multiple components, such as image servers, which store and retrieve medical images [JWS98].1 The performance and reliability of an EMIS is crucial to physicians, medical staff, and patients using the system. Therefore, it is important to monitor the state of EMIS components carefully. Specialized agent components address this need by propagating events from other EMIS components, such as image servers, back to management applications. Administrators can use these management applications to monitor, visualize, and control [PSK+97] the EMIS’s overall status and performance. For example, a management application can request that an agent notify it every time an image server on a host accepts a new network connection. Typically, such a request is issued by invoking an 1. Other components in a distributed EMIS include modalities, clinical and diagnostic workstations that perform imaging processing and display, hierarchical storage management (HSM) systems, and patient record databases [BBC94]...
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...Confirmations List the four factors auditors should consider when evaluating the results of confirmation procedures: External confirmations are direct written response from third parties, addressed directly to auditors. External confirmations are obtained to satisify the existenance, accuracy, allocation, and cutoff objectives. It is important that the auditor keeps control on the procedures to get unbiased results. Confirmations should be tailored designed to meet the specific objects of a particular audit engagement and auditor should consider all the factors which can affect the responses. Followings are the four factors auditor should keep in mind while evaluating the external confirmations to arrive at the conclusion that responses received provide sufficent appropriate audit evidence regarding the assertion being audited: The reliability of confirmations: The auditor has to understand the reliability of the responses because even though the responses are obtained from the external sources, circumstances may affect the reliability. Responses may carry some risks of interception, frauds, and modifications. Information obtained may be not from authentic sources. The nature of any exceptions, including any implications and if any restrictions are imposed by the client over or included in the responses. It includes any implications which may be qualitative and quantitative of exceptions to the assertions. The evidence provided by other procedures: The auditor...
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...Objectives System is used to Manage Employees, In Recruitment process choose candidate, Project Management, Client Management at one place. Platform Web Application Front End .NET Framework 4.0 with VB Back End Microsoft SQL Server 2008 Tools Visual Studio 2010, Ajax Control Toolkit 4,Crystal Report 2008 Students Name Sona Patel (13084231201) Payal Patel (13084231170) Internal Guide Hiral R. Patel Developed By Sona Patel Payal Patel Existing System:• Existing system requires manual integration of data and management of different-different processes. • Company requires different systems for Human Resource Information management, Project management and client & Product management. • Searching and tracking of information becomes complex and time consuming. Need for New System:• The new system requires to integrate systems for Human Resource Information , Client management and Project management at one place. • It makes data manipulation of projects & employees easy and fast. Its Less time consuming and provide efficient searching. FUNCTIONAL SPECIFICATION:• User Specification: 1. Administrator 2. HR Manager 3. Recruitment Manager 4. Marketing Manager 5. Project Leader 6. Team Leader 7. Employees / Team Members Users Specification:1) Administrator:• • Administrator can create and manage clients, projects and users. Administrator can also allocate/change project manager and manage account. 2) HR...
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...Reg. - 11009839 Sec- D1R05 Q:1 Take a JavaBean Object named “Profession” with properties domain and expertise. Show the use of all 4 scope types on this object. Ans: Profession.jsp file package pk; public class profession { int domain; int expertise; public int getdomain() { return domain; } public void setdomain(int a) { this.domain=a; } public int getexpertise() { return expertise; } public void setexpertise(int b) { this.expertise=b; } } 1) Index.jsp file(for session Object) 2) Index.jsp file(for Page Object) 3) Index.jsp file(for Request Object) 4) Index.jsp file(for Application Object) Q:2 Discuss and Demonstrate the use of all page directive attributes. Give minimum 2 separate types of examples for each attribute, to make it clear that how that attribute is effecting output. Ans: Page directive attributes are: |Attribute |Purpose | |buffer="none|size in kb" |This attribute determines whether the output stream is buffered. The...
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