...Income Taxes We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the respective tax bases of our assets and liabilities. Deferred tax assets and liabilities are measured using current enacted tax rates expected to apply to taxable income in the years in which we expect the temporary differences to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that some portion of the tax benefit will not be realized. In addition, our income tax returns are periodically audited by domestic and foreign tax authorities. These audits include questions regarding our tax filing positions, including the timing and amount of deductions taken and the allocation of income among various tax jurisdictions. We evaluate our exposures associated with our various tax filing positions; we recognize a tax benefit only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of our position. For uncertain tax positions that do not meet this threshold, we record a related liability. We adjust our unrecognized tax benefits liability and income tax expense in the period in which the uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the...
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...Lease Management Tanglin Mall has some good leasing techniques such as focusing on its anchor tenant. The anchor tenant of Tanglin Mall is ‘iwannagohome’ which occupied the entire first two levels of the mall. This has aided in enhancing its reputation and value of the property, which can attract more customers to patronize the mall and bring crowds to the other stores as well. The name of the store has been prominently displayed as an anchor tenant outside of the mall, which is a form of marketing and advertising to the public to draw them to the mall. As the mall is located inconveniently away from the MRT station, not many customers would be willing to patronize the mall. However, placement of an exclusive store not widely available island wide, such as ‘iwannagohome’, as an anchor tenant is a good strategy of attracting more customers to the isolated mall and has a positive effect of the property’s marketing positioning. Assuming the anchor tenant has a good track record of prompt rental payments, it helps Tanglin Mall secure returns by investing in stable tenants who pay high rents. Moreover, it has leased its retail stores to some stores such as ‘Salam Carpets’,’Wingngai’ and ‘Carlos Gallery’, which focuses on selling traditional and cultural items. These leases are unique and exclusive as they stand apart from the typical fashion and high-end outlets, which gives the mall a competitive edge over the rest. Especially with target market of tourists and foreigners...
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...References 4 1.5. Financial Information 4 2. Response to scope 4 3. Proposed Pricing 5 4. Other 6 4.1. Building requirement 6 4.2. Building location 6 4.3. Lease 6 4.4. Flood plain 6 4.5. Remaining issues 6 Attachments: Building location 7 Lease 16 1. Summary of proposal Office, Retail, Industrial & Investment Sales, LLC, is pleased to offer our bid to provide office space to the General Service Administration (GSA) in the Atlanta Metro area, Solicitation number: 3GA0233.. William Jones is Co-Owner and Principal Office, Retail, Industrial & Investment Sales, LLC, and has been involved in the commercial real estate industry since 1987. During this time span, William has completed approximately 1000 transaction with total consideration in excess of $1,500,000,000. Cynthia has been honored consistently as an industry leader while also recognized as a “Top Producer” by the Atlanta Metro Real Estate Association over the past 20 years William has been instrumental in growing Office, Retail, Industrial & Investment...
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...Dear Ms. Lopez: Based on a quantitative and qualitative assessment of the current offer, it is my recommendation NOT to accept the offer of $22,500,000 for Uptown Plaza because there is an approximate 80% probability that the present value of 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...
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...little less, Costing us 17.75% because the preferred stock(even though this company does not have any) would be less risky because of the fact that shareholders of preferred stock would get payed before those holders of common stock. 4. Marginal Cost of Leasing: KL= Kd(1-T)+ Premium KL=.0875(1-.35)+.02= .0769(or 7.69%) Referring to my source, under leases, it says it has various % so .02 premium would seem appropriate due to an increased risk of default. “The Company enters into non-cancelable operating leases for retail stores, distribution facilities, equipment, and office space. Most leases have fixed rentals, with many of the real estate leases requiring normal and customary additional payments for real estate taxes and occupancy-related costs. Rent expense for leases having rent holidays, landlord incentives or scheduled rent increases is recorded on a straight-line basis over the lease term, generally beginning with the lease commencement date. Differences between straight-line rent expense and actual rent payments are recorded in other assets or other liabilities as an adjustment to rent expense over the lease term. During fiscal 2014 , 2013 and 2012 , the Company recorded approximately $49 million, $47 million, and $49 million, respectively, in...
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...fiscal year. The increase was due mainly to favorable exchange rates as well as reductions in material and other costs which together overcame such negative factors as decreases in wholesale volume and increases in sales expenses including advertising costs. Along with the increased non-operating income from factors including foreign exchange gains MMC posted an ordinary income of 22.3 billion yen, a 57% or 8.1 billion yen increase year-on-year. Net income for the term amounted to 16.4 billion yen, an 18% or 3.6 billion yen decrease year-on-year without the benefit of a 11.4 billion yen in extraordinary income from the sale of stock in affiliates like what was recorded in the first quarter of last fiscal year. 2. Sales volume (Retail) Global retail sales volume for the first quarter of fiscal year 2013 totaled 249,000 units, a 4% or 10,000-unit increase over the same period last fiscal year. Sales volumes by region were as follows: Japan: Sales volume totaled 28,000 units for the quarter, a 6% or 2,000-unit decrease year-on-year. Despite a strong start by the June-released all-new eK Wagon and eK Custom minicars, sales of other models lagged; contributing to the...
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...Death of the Operating Lease Running head: DEATH OF THE OPERATING LEASE 1 Death of the Operating Lease and its Impact on Leading U.S. Companies Mark S. Lynn Mount St. Mary’s University Copyright 2010, Mark S. Lynn Death of the Operating Lease Abstract The proposed elimination of operating lease treatment by the IASB and FASB, as outlined in 2 their discussion paper, Leases – Preliminary Views, will have a varying degree of impact on U.S firms. After a review of the evolution of lease accounting and a discussion of financial ratio analysis, this paper examines the impact of the proposed accounting change on common financial ratios of 142 large public companies. The proposal requiring the capitalization of all lease arrangements is generally detrimental to such financial measurements, with significant variability among industry sectors. Through surveys and interviews, it is further determined that while a majority of corporate financial executives do not support the proposed accounting change, they have yet to analyze the impact and prepare for the effects of the change within their own companies. Copyright 2010, Mark S. Lynn Death of the Operating Lease Death of the Operating Lease and its Impact on Leading U.S. Companies 3 “We are only tenants, and shortly the great Landlord will give us notice that our lease has expired.” ~ Joseph Jefferson (1897, p. 476). A lease is broadly defined as a contract by which an owner of property grants to another...
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...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...
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...REAL ESTATE LEASE This Lease Agreement (this "Lease") is dated September 14, 2013, by and between John Berleen and Jennifer Berleen ("Landlord"), and Amy Ammerman ("Tenant"). The parties agree as follows: PREMISES. Landlord, in consideration of the lease payments provided in this Lease, leases to Tenant a two-bedroom house with one full bath (the "Premises") located at 1029 3rd St, Webster City, Iowa 50595. No other portion of the building (hereinafter, the Building), wherein the Premises is located is included unless expressly provided for in this Agreement. TERM. The lease term will begin on October 01, 2013 and will terminate on September 30, 2014, and thereafter shall be month-to-month on the same terms and conditions as stated herein, save any changes made pursuant to law, until terminated. MANAGEMENT. The Tenant is hereby notified that John Berleen is the property manager in charge of the Property. Should the tenant have any issues or concerns the Tenant may contact John Berleen at 3192128268 or by mailing a letter to 3231 Stratford Ln Sw, Cedar Rapids, Iowa 52404. LEASE PAYMENTS. Tenant shall pay to Landlord lease payments of $400.00, payable in advance on the first day of each month, for a total lease payment of $4,800.00. Lease payments shall be made to Landlord at 3231 Stratford Ln SW, Cedar Rapids, Iowa, 52404 which may be changed from time to time by Landlord. SECURITY DEPOSIT. At the time of the signing of this Lease, Tenant shall pay...
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... * Yes, according to the press release on April 15, 2007 cash flows are expected to be generated. Auto World is expecting operating earnings of $58 million in 2008 and $67 million annually thereafter. Auto World will also be losing $100 million because there will be continuing cash flow from the sale of automotive services and tires by the ongoing Auto Boyz Centers of $600 million, but Pit Stop would have generated approximately $700 million. Since the answer is yes, we can move to step three. * Step Three: Do the continuing cash flows result from a migration or a continuation of activities? * Yes, the services that were previously provided at Pit Stop Service & Tire Centers will now be provided at existing Auto Boyz Retail...
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...REAL ESTATE LEASE This Lease Agreement (this "Lease") is dated December 01, 2011, by and between Keith Lampkins ("Landlord"), and Adrian Marsh ("Tenant"). The parties agree as follows: PREMISES. Landlord, in consideration of the lease payments provided in this Lease, leases to Tenant two bedrooms and a bath; access to living areas and kitchen. (the "Premises") located at 15764 Tern Road, Victorville, California 92394. No other portion of the building (hereinafter, the Building), wherein the Premises is located is included unless expressly provided for in this Agreement. TERM. The lease term will begin on December 01, 2011 and will terminate on July 01, 2012, and thereafter shall be month-to-month on the same terms and conditions as stated herein, save any changes made pursuant to law, until terminated. LEASE PAYMENTS. Tenant shall pay to Landlord initial monthly base lease payments of $200.00, payable in advance on the first day of each month, for a total lease payment of $1,400.00. Lease payments shall be made to Landlord at 15764 Tern Road, Victorville, California, 92394 which may be changed from time to time by Landlord. Tenant agrees to submit payment of all lease payments by personal check, cashiers check, or money order. No cash payments will be accepted. In the event of roommates, or another form of joint or multiple occupancy, Tenant will be responsible for collecting payment from all parties and submitting a single payment to Landlord. Tenant is responsible for any payment...
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...Bonne Sante S. A. Case Truck (short term lease) 1) Right of use asset 800 Lease obligation 800 Interest expense 40 Lease obligation 760 Cash 800 Retail Outlet 2) Right of use asset 10,000 Lease obligation 10,000 Interest expense 17 Lease obligation 9983 Cash 10000 Under the previous IAS 17 by the (IASB), in operating lease, the lessee does not need to recognize the leased asset in their Balance Sheet. In 2010, August, the IASB issued an ED, changing various changes to the IAS 17. The overall effect of the new ED was that lessees would have to recognize a “right-to-use” asset and a lease liability in term of Lease Interest for all of their long and short term leases in the Balance Sheet. Also, “right-of-use” asset would be amortized against the basis of the lease term or the life of the leased asset, whichever is shorter. Since, the new ED states that the contracting parties must agree on 10 years lease term at least, so the BonneSante must cancel out their lease agreements of less than 10 years lease term and renew them with the new requirements. 2) Before the new ED, the Bonne Sante recorded their lease records according to IAS 17 and they were only recognizing the lease payments in income statement as an expense. There weren’t any recognition criteria for “right-of-use” asset. So the investors were unable to classify the liability against the lease rental payments from the balance sheet, in...
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...Accounting for leases: Change is coming. By Matthew Rodgers and Peter McElwain, Baker Tilly September 21, 2010 Leasing of equipment, real estate, and other assets has been and continues to be a significant source of financing for businesses in all industries. As a result, the financial reporting rules for the treatment of lease transactions can be significant to the financial statements and the business operations of lessees and lessors alike. The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have undertaken a joint project on leases to improve the financial reporting for lease transactions. The financial reporting standards in the United States currently provide that all lease transactions will be accounted for in one of two ways depending on facts, circumstances, and to some degree the judgment of the users. The two alternative treatments, referred to as operating leases and capital leases, have dramatically different consequences on the financial statements of both lessees and lessors. There are a number of perceived weaknesses in these rules and the manner in which they are applied, which many believe result in inconsistent and incomplete reporting and presentation of an entity’s leasing activities. In response, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have undertaken a joint project on leases to improve the financial reporting for lease transactions...
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...12-32 Operating Leases: Income Effects of Constructive Capitalization Eugene A. Imhoff, Jr.. Robert C. Lipe and David W. Wright Eugene A. Imhoff, Jr. is Professor at University of Michigan, Robert C. Lipe is Associate Professor at University of Colorado at Boulder and David W. Wright is Associate Professor at University of Michigan. SYNOPSIS: Lease contracts written in 1994 in the U.S. have been estimated at over $140 billion (London Financial Group Ltd. 1996). The amount of leasing activity continues to grow, particularly op erating-type leases which provide a source of off-baiance sheet financing. However, a recent publication by an international group of representatives from the FASB and six other national and international accounting standard setting bodies suggests that iease accounting should require alt lease contracts to be capitalized as assets and liabilities (McGregor 1996). This suggestion has also been made by the Association for Investment Management and Research (AMIR) in a December 1993 white paper. A previous Horizons paper by Imhoff et al. (1991) illustrated how to constructively capitalize operating leases. However, this prior study focused exclusively on the balance sheet effects for a single period, and assumed the income statement effects were negligible. The current study cites evidence that suggests the income statement effects may be material, and illustrates how to estimate the impact of constructive capitalization of operating leases on both operating...
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...SAMPLE MULTI-YEAR LEASE AGREEMENT This Lease Agreement is entered into on this ___ day of _____________, 2009, by and between ________________ as lessor (“Lessor”), and____________________, as lessee (“Lessee”), for the Lease of certain land bounded by ____________in _______________, for the purpose of establishing and developing an agricultural enterprise. I. Prologue and Statement of Purpose Whereas both parties share a mutual interest in the long-term health and productivity of the agricultural lands and related features described below; and whereas the Lessor wishes to offer a secure and affordable farming opportunity to the Lessee; and whereas the Lessor wishes the property to be maintained according to high standards of stewardship, the parties agree as follows: II. Description of Leased Premises a) The Premises shall consist of cropland and other land, roads and structures as more particularly described in Attachment A. b) If applicable: So that the Lessee can reside in close proximity to the land and provide for its care and supervision, Lessor and Lessee shall also be parties to a separate residential lease agreement for a term beginning on _________ and ending on ____________ for the farmhouse property located at ________________ (the “Residential Lease”). If the parties agree to an extension of the term of this Lease, either via an amendment to this Lease or the execution of a new lease between the parties, Lessor shall also offer Lessee an extension of the Residential...
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