Case 9-4 How should NeedsSpace account for the two obligations noted as provisions in the lease agreement? ● Provision 1: “Lessor may require the lessee to perform general repairs and maintenance on the leased premises.” By entering the lease agreement, NeedsSpace (the lessee) becomes legally and contractually responsible for performing general repair and maintenance on the leased premises. Assuming that the lessee is required to make deposits to financially protect the lessor concerning
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Capital Leases | Overview According to FASB ASC 840 (n.d.) (IAS 17), a capital lease exists if one of four conditions is met: the transfer of title of the asset to the lessee, the lease includes a bargain purchase option, the lease period is equal to or greater than 75% of the estimated economic life of the asset, or the present value of the minimum lease payments is 90% or more of the fair value of the asset less investment tax credit held by the lessor. Capital Leases | Requirements
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debt restructuring is imperative. The manager of this company has requested an explanation of the above regarding bonds payable, notes payable, and capital leases. This paper should satisfy any questions about these topics. Long-Term Liabilities Included are several types of long-term liabilities; bonds payable, notes payable, and capital leases. Each of these types of debts have some similarities and some differences regarding the reporting and disclosure requirements, so to better understand those
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Health Care Financial Accounting La’Kesha Wright HCS/405 10/01/2012 Sherida Douglass Introduction Good cash flow is essential to every organization, including hospitals, where quality care of every patient is essential. A steady and consistent cash flow can help improve the hospitals borrowing power, which will increase and maintain the income level. Capital Shortage My challenge was to decide on the best strategy to solve the cash flow problem at Elijah Heart Center (EHC). In addition
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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
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continue to operate regardless of the cost so as not to lose its customers, expenses for shuttle services to transport employees between locations and allowances for employees commuting expenses. * Loss of lease already paid. * The cost to relocate since the owner has terminated the previous lease. * The cost of staff time to resolve the issues associated with the
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company, has entered into a 10-year non-cancelable agreement with Goliath Company to lease a turbine. The lease is effective on January 1, 2011. The purpose of this report is to provide Big Bear with insight in evaluating whether the costs or potential costs associated with the lease should be included in the “minimum lease payments” according to US GAAP Accounting Standards Codification. When assessing the minimum lease payments, we reviewed the legal costs incurred to Big Bear’s external legal counsel
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the overall demand for the units. Keeping tenants happy is the key to customer retention. The goal is to get them to sign another lease term. In the property management business this means responding promptly to service calls, enforcing noise ordinances, and attending to the overall upkeep of the units. When renters are happy, they are more likely to renew their lease when the term is up. They are also more likely to refer others who are looking for housing, building a close knit community of long
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together US GAAP and IFRS on the topic of lease accounting. As we learned in class, one of the main differences between US GAAP and IFRS is the recognition of the expense pertaining to the lease. This is still one of the major sticking points in the discussions because it can affect the balance sheet so much. The main reason why the two parties are coming together to see if they can reach an agreement on this topic is to be able to create greater transparency for lease accounting worldwide to help investors
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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
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