Just as the introduction of previous leasing standards (which utilised the concept of financial versus oper- ating leases) created concerns for reporting entities and led to various strategies being undertaken to devise leases that were construed as operating leases, it will be interesting to see how reporting entities will react to a future accounting standard that abandons the concept of finance leases versus operating leases and there- fore requires even more leases to be shown within the statement of financial position. Beattie et al. (2006) surveyed 132 expert users and preparers in the UK to find out their opinion on the suggested changes to the accounting for leases (i.e. the capitalisation of operating leases). Both types of stakeholder (user and preparer) agreed that the current leasing standard was not of high quality. There was a view that it allowed transactions to be deliberately structured for classification as off-balance sheet operating leases, thereby enabling similar transactions to be accounted for in different ways. However, the preparers considered that this did not impair user decision-making (a view not held by the users). Both stakeholders agreed that the assets, liabilities and subsequent gearing ratios would change and this would have knock-on effects for companies. On the down- side it was suggested that companies may have to renegotiate borrowing covenants, may experience a down- grading in credit rating and would incur compliance costs. On the upside, users considered that it would improve users’ evaluation of a company’s long-term commitments and their ability to make comparisons across companies. It was also considered that the accounting change may have an adverse impact on the leas- ing industry as its benefit (an off-balance sheet form of finance) over other forms of debt finance is removed and it was suggested that managers may negotiate very short lease contracts to minimise the impact on the statement of financial position.
Apply your critical-thinking ability to the knowledge you’ve gained. These cases will provide you an oppor- tunity to develop your research, analysis, judgment, and communication skills. You also will work with other students, integrate what you’ve learned, apply it in real world situations, and consider its global and ethical ramifications. This practice will broaden your knowledge and further develop your decision-making abilities. Refer to the most recent financial statements and related disclosure notes of Walmart Stores, Inc. You can find these at the Walmart website, walmartstores.com , or by using Edgar at www.sec.gov . Management’s Dis- cussion and Analysis states that Walmart has $12,830,000,000 of “Unrecorded Contractual Obligations: Non- cancelable operating leases.”
attendance is extremely important and creates a more interesting and dynamic class. Many class discussions will be related to the homework assignments; therefore, it is expected that students will attend and participate in all class sessions with all assignments prepared professionally and accurately. You are expected to attend class, and successfully achieve the student learning outcomes for each major milestone of the course. The student is responsible for all material covered in class, late assignments will not be accepted. Material covered in class may not be in the textbook, and could be included in exams. If you are not present when materials are discussed, assigned or distributed in class, it is your responsibility to obtain materials from other members of the class.
With roughly $1 trillion in financial assets as of mid-2000, the finance company sector occupies an intermediate position among the sectors that typically lend to households and businesses: In terms of assets, it is more than twice as large as the credit union sector, about the same size as the thrift sector, but only about one-fifth as large as the commercial bank- ing sector. The approximately 1,000 companies that make up the sector (down from about 1,200 in 1996) range in size from very small to very large and include the ''captive'' subsidiary finance companies of motor vehicle manufacturers. The companies tend to be diversified, with more than 90 percent of the sector's assets as of mid-2000 held by companies that did not concentrate in any one type of receivable. The larger firms are more likely to be diversified; of the small firms that specialize, most focus on short- and intermediate-term business receivables. The sector is quite concentrated, and has been for some time, with the twenty largest companies accounting for more than two-thirds of total receivables (see box "Indus- try Concentration'').
Although there are many sophisticated forms of long-term commercial leases of whole buildings/sites and, indeed, there are well-established forms of long-term individual apartment leases, there is little by way of an institutional form of a long-term commercial lease of part. There is possibly less general appreciation of the significant provisions required for such long leases, particularly to cover development, investment, funding and occupational issues. A look at the Council of Mortgage Lenders' requirements gives an indication of the provisions and underlying reasoning as applicable to apartment leases but there is little in the commercial sector; for example, the City of London Law Society Certificate of Title, a key element of many funding transactions, has no bespoke provisions relating to a long commercial lease of part; indeed, initial drafts of leases of part are sometimes derived more from a form of short-term rack rented commercial lease rather than, for example, the more appropriate starting point of a long lease of a valuable apartment.
The Department of Maori Affairs has, for a long time, overseen agricultural leases on Maori land, but has not become involved in afforestation leases. Assisted by the Maori Land Court (which has statutory powers to deal with Maori land matters), the Department of Maori Affairs could provide an advisory service for lessors and could act on their behalf when the need arose. Manpower requirements would not be excessive as the number of leases negotiated at any one time is not large. Should Government funding be unavailable, the cost of providing such a service would represent only a small portion of the potential income to lessors. Since the N.Z. Forest Service is a lessee, forestry expertise would have to be provided by an independent
Taxation of Leases Profits and Pitfalls SMU Law Review Volume 30 | Issue 2 Article 3 1976 Taxation of Leases Profits and Pitfalls J Scott Morris Follow this and additional works at https //scholar smu[.]
from its prior order, the District Court noted that “[e]ven if BLM has the authority to deny a leaseholder’s application to mine or drill, under the non- NSO leases in this case, it cannot prohibit other manner of surface occupancy, such as constructing a building or road.” 27 Acknowledging that
There have been the recent calls for additional research in order to enhance the understanding of the adoption of management accounting practices (MAPs) in small and medium sized enterprises (SMEs). This, allied to an increasing importance of SMEs around the world especially in developing countries, is the motivation for this research. This research explores the uptake of a broad range of MAPs in Malaysian SMEs; identifies the roles of MAPs in the management of SMEs; determines factors that affect the extent of use of MAPs in SMEs and lastly examines the relationship between the use of MAPs and organizational performance of SMEs. A postal questionnaire was conducted to 1,000 Malaysian SMEs in manufacturing sector which elicited 160 useable responses.
The function of annual reports is related to beliefs about the role of business organiz- ations in society and their objectives. Up until about the mid-1970s the accountancy profession took the view that the primary objective of a business enterprise was to maximize its profit and the wealth of its shareholders. This was reinforced by disciplines such as economics that gave prominence to the classical theory of the firm. The function of annual reports was thus regarded as being to provide information about the profitability and financial position of a company to those with whom it has a capital contractual relationship, namely shareholders and loan creditors.
In looking at comparables it is extremely important to ensure that the rents are set out on a consistent basis. Today there are many charges built into leases that change the “net effective rent.” This is a phrase that is an attempt to provide a consistent approach to comparing rents. The net effective rent will take into account:
OBJECTIVES To establish a fair and equitable rent structure, on a contribution basis, which reflects the services provided by Council and takes into consideration the Shire’s objectives and community obligations. It covers the cost of the agreement, fees and charges, building maintenance, management of reserves and facilities.
a. Social income statement: This list shows the net profits or social losses, which reflects the net contribution of the project to the community. The net profits or social losses are reached by adding the amount of the value added by the project. This amount is known as external economic savings or social benefits and the costs are deducted from the product imposed by the project on the society, i.e he value of damage to society as a result of the project's economic activity. These damages are defined as negative effects of the external or social costs. This list begins with the end of the economic activity as a starting point in this list, which is the value added (net accounting profit) and this list is comprehensive. b. List of social impact: According to this list, the benefits are determined on the basis of the value of the benefits to the community, while the costs represent the value of the sacrifices made by the community for the project or the damages caused by the project to the society. The social benefits according to this list include all the benefits that the project has provided to the community and gained something against it. As well as all the benefits for which no income has been received or for which compensation has been received but not sufficient. The social costs are any sacrifice or damage to the community or to one of its components, which include all the sacrifices made by the community to the project and the project is paid for. The social costs also represent the value of the damage caused by the project to society
Manhattan office vacancy rates plummeted in the third quarter of 2014 despite only moderate leasing activity, as few new blocks were added over the summer. Tenant relocations and industry migration—spurred by the quest for better value, efficiency and employee retention— remained overriding trends as new leases outpaced renewals for both the quarter and the year. Driven by migration to Downtown from Midtown, especially by the media and other creative industries, the Downtown Class A vacancy rate (11.2 percent) is nearing that of Midtown (11.0 percent). Meanwhile, Midtown South—still the preferred location for New York’s expanding technology industry—registered as one of the tightest Class A markets in the country, at 4.1 percent. Even with these sharp declines in vacancy, Manhattan asking rents trended only slightly higher for the quarter and remained, on average, below the 2008 peak. Weak employment growth in financial and legal services and looming large blocks in Midtown continued to offset market optimism elsewhere.
7. Shopping Center leases may include a “breakpoint” or “percentage” rents which refers to Tenant paying to Landlord a certain percentage of gross receipts after reaching a “breakpoint.” The Landlord becomes the Tenant’s partner. Landlord’s justify this provision by claiming the Tenant’s gross is partially based on the traffic generated by the mall’s location. These provisions are also included by Landlord’s in tourist areas (Long Grove) or other special circumstances. Avoid if possible but in any event pay special attention to accounting provisions and who pays for cost of audits.
12 USC 24(Seventh) and incorporates, with changes, the provisions previously contained in an interpretive ruling. Under this subpart, a national bank may be the lessor of tangible or intangible personal property on net leases that are the functional equivalent of loans. The bank’s recovery of its investment plus financing costs must depend on the creditworthiness of the lessee and any guarantor of the residual value. The unguaranteed portion of the estimated residual value relied on by the bank to yield a full return must not exceed 25 percent of the property cost. Calculations of estimated residual values for leases with governmental entities, however, may be based on a reasonable expectation that transactions will be renewed.
Smaller companies are against a rate cap increase because they are feeling the driver shortages more acutely and may not be able to raise their gate fees in any event. Smaller companies also note that the larger companies pushing for a gate fee increase also benefit through medallions they control. In particular, these companies were the majority recipients of 150 medallion leases issued last year by the SFMTA (termed the 8000 series). The SFMTA allocated these medallions based on quality of service assessments. The 8000 series are leased for three years at a fixed cost of $2000 per month, so any increase in gate fees charged for their use would be a net increase in revenue to those companies. Drivers are also of a mixed position. Most drivers expected an increase in the gate fee cap to follow after the 2011 meter rate increase. Even so, some drivers who do not hold medallions feel that gate fees are too high at present and should be rolled back. Medallion holding drivers favor a gate fee increase, but at a lower level than suggested by companies.
• In dialog with many other Insurance companies, they are unanimous in the response that they will not insure losses as a result of gas leases or drilling and most stated that if they became aware that a lease or drilling was in effect, they would not renew insurance coverage.