Chapter 18 Lease Financing ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS 18-1 An operating lease is one that typically requires the lessor to service the equipment, that has a lease term that is much shorter than the life of the equipment, and that can be cancelled by the lessee. A capital or financial lease has a lease term that is closer to the expected life of the asset, requires the lessee to provide maintenance service, and cannot be cancelled without a substantial penalty. A sale
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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
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person to obtain a license or lease for carrying on mining or related activities. A new concession instrument called a High Technology Reconnaissance-cum-Exploration License has been introduced. The Bill provides for two methods of granting a mineral concession – competitive bidding where mineralisation is established and first-comefirst-serve otherwise. A District Mineral Fund (DMF) will be established in each district where there are mining operations to make payments to affected persons. A
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SEC Staff Accounting Bulletin: No. 101 – Revenue Recognition in Financial Statements Securities and Exchange Commission 17 CFR Part 211 [Release No. SAB 101] Staff Accounting Bulletin No. 101 Agency: Securities and Exchange Commission Action: Publication of Staff Accounting Bulletin Summary: This staff accounting bulletin summarizes certain of the staff's views in applying generally accepted accounting principles to revenue recognition in financial statements. The staff is providing
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BUSINESS FOR SOCIAL RESPONSIBILITY CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2011 (WITH COMPARATIVE TOTALS FOR 2010) Armanino McKenna Certified Public Accountants & Consultants LLP TABLE OF CONTENTS Page No. Independent Auditors' Report 1 Consolidated Statement of Financial Position 2 Consolidated Statement of Activities 3 Consolidated Statement of Functional Expenses 4 Consolidated Statement of Cash Flows 5 Notes to Consolidated Financial Statements
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RECOGNITION OF ASSETS Accountants define assets as resources that a firm owns or controls as a result of past business transactions, and which are expected to produce future economic benefits that can be measured with a reasonable degree of certainty. Distortions in asset values generally arise because there is ambiguity about whether: * The firm owns or controls the economic resources in question: * Are the ventures controlled? * Are the leased assets owned by the lessee
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Krause Fund Research Spring 2012 Technology Recommendation: BUY Analysts Jeremy Gorsky jeremy-gorsky@uiowa.edu Jeremiah Hagen jeremiah-hagen@uiowa.edu Yang Jing yang-jing@uiowa.edu Linshan Li linshan-li@uiowa.edu Apple Inc. (NSDQ: AAPL) April 17, 2012 Current Price $609.60 Target Price $765-790 Apple Bytes Its Way To The Top The iPad has revolutionized the booming tablet industry and is dominating a 61% market share with a unit sales increase of 111% over the year ago quarter. A
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RESEARCH: Accounting Standard Codification (ASC) 1. FASB had four primary goals in developing the codification. List these four goals: 1. Simplify user access to all authoritative U.S. GAAP by putting them all in one place with codification 2. Assist FASB with the research and international convergence efforts required during the standard-setting process 3. Become the authoritative source of literature for the completed extensible business reporting language (XBRL) taxonomy 4. Clarify that
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If sales exceed $225,000 rent will be calculated at 8%. The minimum lease period is 3 years. The advantages of Tenderloin Village are the gentrified urban area of the city. The comfortable neighborhood makes it feel like a trendy enclave. The available site offers excellent visibility it is on the Villages main street. There about 20 small retailers & nouveau cuisine restaurants in the area. The landlord knows Stephanie and the lease period is the shortest at 2 years. The disadvantages are high
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ABC Lease Case ISSUE: Based on the ASC48,the agreement between ABC Inc. and Landlord LLC is operating lease. The cost of tenant improvements construction is treat as rental expense. BRIEF BACKGROUND OF COMPANY * ABC Inc. entered into an agreement with Landlord LLC to lease 40% of a building located in San Francisco. In addition, ABC Inc. wanted to make a improvements to the lease building to meet ABC's design specifications. The tenant improvements are for general purpose, but structural
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