Off-Balance Sheet Financing: Operating Leases & Other Topics
|
|
|
- Osborne Gilmore
- 8 years ago
- Views:
Transcription
1 Off-Balance Sheet Financing: Operating Leases & Other Topics Session 7 FIN Financial Statement Analysis 1 Let s Discuss Leases FIN Financial Statement Analysis 2 1
2 Off-Balance-Sheet Obligation with Leases Capital leases versus operating leases Capital lease: Leases which effectively transfer all/most of the rewards and risks to the lessee Economic equivalent of financed sales Operating leases: Short-term leases which allow the lessee to use the asset for a short period of time. FIN Financial Statement Analysis 3 Leasing Rules Rules invoked at the inception of the lease: Transfer of ownership Bargain purchase option in the lease Lease life 75% of economic life» Exception if asset is within last 25% of its life PV of lease payments 90% of 1st cost» Discount rate: Lower of lessee s incremental borrowing rate or lessor s implicit interest rate Violation of one rule results in treating the lease as a capital lease. FIN Financial Statement Analysis 4 2
3 Circumvent the Lease Rules Why bother? Only matters to lessee because: Profits and incentive compensation affected! Improved ratios for profitability, leverage, and turnover Debt kept off the balance sheet» May circumvent bond covenants Lessor: Wants to use capital lease treatment. FIN Financial Statement Analysis 5 Accounting for Lessee: Operating Lease vs. Capital Lease Operating Lease Debit: Rental expense Credit: Rental payable or cash Capital Lease Debit: Fixed asset Credit: LT liabilities Debit: Depreciation expense Credit: Accumulated depreciation Debit: Interest expense Debit: LT liabilities Credit: Lease payable or cash FIN Financial Statement Analysis 6 3
4 Accounting Treatment: Lessee Exhibit 8-12 of White, Sondhi, and Fried Puts numbers to the accounting treatment Discusses:» Balance sheet» Income statement» Statement of cash flows. FIN Financial Statement Analysis 7 Accounting for Lessor: Operating Lease vs. Capital Lease Operating Lease Debit: Rental receivable Credit: Rental revenue Capital Lease Debit: Account receivable Credit: Sales revenue Leased asset remains on books as a fixed asset. Depreciation taken annually. Debit: Cost of sales Credit: Inventory/fixed asset Debit: Interest receivable Credit: Interest income FIN Financial Statement Analysis 8 4
5 Accounting Treatment: Lessor Exhibit 8-15 of White, Sondhi, and Fried Puts numbers to the accounting treatment Discusses:» Balance sheet» Income statement» Statement of cash flows. FIN Financial Statement Analysis 9 Capitalize the Operating Leases Capital lease ratio approach Formula: NPV = PV of capital leases x total op. leases Total capital leases Net present value approach Formula: NPV = Discounted value of all future cash flows. FIN Financial Statement Analysis 10 5
6 Example: Capitalizing Operating Leases Manpower, Inc. s 1993 annual report shows: Total lease obligations = $238, $44, $34, $27, $20, $15,299 Later $95,497 Note 6 of the report: Convertible debt issued at 6.25% PV = $44,364/(1.065) + $34,951/(1.065) 2 + $27,630/(1.065) 3 + $20,843/(1.065) 4 + $15,299/(1.065) 5 + [$15,916/(1.065) $15,916/(1.065) 11 ] = $178,949. FIN Financial Statement Analysis 11 Other Off-Balance-Sheet Financing FIN Financial Statement Analysis 12 6
7 In-substance Defeasance of Debt Definition of Defeasance: An instrument accompanying a bond, containing a condition which, when performed, defeats or undoes it. In-substance defeasance means that the bond does not contain the condition but the firm can still undo the bond. Why bother? How is it done? FIN Financial Statement Analysis 13 Why Bother? Removes debt from the balance sheet Improves debt/equity ratio Usually results in a profit Improves profitability ratios Profit is tax deferred until maturity date of debt Overall: Less risky & more profitable Higher profits higher compensation. FIN Financial Statement Analysis 14 7
8 How Does it Work...? Necessary debt characteristics Fixed rate, fixed maturity Nonconvertible, non-callable U.S. treasury rate > debt s coupon rate Find present value of company s debt issue PV = Interest x (PVIFA r%, n yrs) + principal x (PVIF r%, nth yr) Book value of debt > market value of debt. FIN Financial Statement Analysis 15 How Does it Work...? Company pays market value of debt to an irrevocable trust Means: Money flows in one direction Trustee responsible for making payments to debtholders Accounting» Debit: Debt at book value $70,000» Credit: Cash (market value of debt) $55,000» Credit: Gain on retirement of debt. $15,000 FIN Financial Statement Analysis 16 8
9 How Does It Work? Irrevocable trust buys government securities with the cash Interest rate for gov t securities > coupon rate of company debt Principal + interest for gov t securities used to pay off company debt as obligations come due. FIN Financial Statement Analysis 17 Nonsub Sub XYZ Corp. developing a new product with long lead time to market Approaches engineers/scientists to start a new company to develop the product» XYZ Co. provides convertible debt financing» New company successful: XYZ Co. converts the debt to equity takes over the new company Consolidates new company with XYZ Co.» New company unsuccessful: XYZ Co. writes off its investment Why do this? FIN Financial Statement Analysis 18 9
10 R& D Partnerships XYZ Corp. forms partnership to develop a product XYZ: general partner Investors: limited partners Partnership has no facilities/personnel sub-contracts the work XYZ Corp. likely the contractor. FIN Financial Statement Analysis 19 R&D Partnership... Royalties Purchase/lease Corporation Limited Partners Trfs. rights Cash Limited Partnership Cash/losses Research product Contractor (likely the Corporation) FIN Financial Statement Analysis 20 10
11 The End FIN Financial Statement Analysis 21 11
Leases Learning Objectives. Overview of Leasing. Advantages of Leasing
Leases Learning Objectives 1. Describe the characteristics and advantages of leases 2. Operating leases vs Captial leases 3. Determine rental payments 4. Account for operating leases - lessee 5. Account
AFM 391 Case Concepts
AFM 391 Case Concepts a. Why do companies lease assets rather than buy them? 1. 100% financing at fixed rates. Leases are often signed without requiring any money down from the lessee, which helps to conserve
The Basics of Lease Accounting
The Basics of Lease Accounting Joe Sebik, VP - Global Originations & Structuring J. P. Morgan Leasing, Inc. (212) 899-1249 joseph.p.sebik@jpmorgan.com Howard Thompson, Director - Pricing & Economics Key
ACCOUNTING FOR LEASES - COMPARISON OF INDIAN ACCOUNTING STANDARD AND US GAAP
D.S.RAWAT FCA ACCOUNTING FOR LEASES - COMPARISON OF INDIAN ACCOUNTING STANDARD AND US GAAP The comparison of lease accounting as per the Indian GAAP (AS-19) US GAAP SFAS-13 is based on (1) The similarities
Proposed Lease Accounting Changes: Impact on Asset Finance Deals
Proposed Lease Accounting Changes: Impact on Asset Finance Deals In August 2010, the International Accounting Standards Board ( IASB ) issued a proposal which, if adopted, will overhaul lease accounting
Student Learning Outcomes
Chapter 15 Leases Part 2: Capital Leases Intermediate Accounting II Dr. Chula King Student Learning Outcomes Explain and use the criteria for determining whether a lease is capital or not Describe and
Bonds and preferred stock. Basic definitions. Preferred(?) stock. Investing in fixed income securities
Bonds and preferred stock Investing in fixed income securities Basic definitions Stock: share of ownership Stockholders are the owners of the firm Two types of stock: preferred and common Preferred stock:
Advanced Accounting 515-44B Leases Review Page 1
Advanced Accounting 515-44B Leases Review Page 1 LEASES REVIEW I. LEASE DEFINITIONS: a. Lease term: The fixed noncancelable portion of the lease plus all renewal terms that are reasonably expected to be
Leases. Chapter 12. Prepared By: Eman Al-Aqeel. Professor : Dr: Amal Fouda
King Saud University College of Administrative Science Department of Accounting 2 nd Semester, 1426-1427 Leases Chapter 12 Prepared By: Eman Al-Aqeel Professor : Dr: Amal Fouda Leasing is an alternative
Accounting for Long-term Assets,
1 Accounting for Long-term Assets, Long-term Debt and Leases TABLE OF CONTENTS Introduction 2 Long-term Assets 2 Acquiring or creating 2 Tangible assets 2 Intangible assets 3 Depreciating, amortizing and
Intercompany Indebtedness. Chapter 8. Intercompany Indebtedness. Consolidation Overview. Consolidation Overview. Intercompany Indebtedness
Chapter 8 Intercompany Indebtedness Intercompany Indebtedness One advantage of having control over other companies is that management has the ability to transfer resources from one legal entity to another
Interest Expense Principal
ACCOUNTING BY THE LESSOR AND LESSEE A lease is a contract between a lessor (the owner of the property) and a lessee (the user of the property). Normally the lessee makes periodic payments in exchange for
Consolidated Interim Earnings Report
Consolidated Interim Earnings Report For the Six Months Ended 30th September, 2003 23th Octorber, 2003 Hitachi Capital Corporation These financial statements were prepared for the interim earnings release
Intermediate Accounting
Intermediate Accounting Thomas H. Beechy Schulich School of Business, York University Joan E. D. Conrod Faculty of Management, Dalhousie University PowerPoint slides by: Bruce W. MacLean, Faculty of Management,
Week 13, Chap 9 Accounting 1A, Financial Accounting
Week 13, Chap 9 Accounting 1A, Financial Accounting Reporting and Interpreting Liabilities Instructor: Michael Booth Understanding the Business Debt is considered riskier than equity. Interest is a legal
Financial Accounting: Liabilities & Equities Class notes Barbara Wyntjes, B.Sc., CGA
Module 5: Leases Part 2: Assignment 17-1 (Chapter 17, page 1080) The lease term is eight years. Guaranteed residual value, none. Unguaranteed residual value, unknown BPO, none. Minimum net lease payment,
PREVIEW OF CHAPTER 21-1. Intermediate Accounting 15th Edition Kieso Weygandt Warfield
PREVIEW OF CHAPTER 21 21-1 Intermediate Accounting 15th Edition Kieso Weygandt Warfield 21 Accounting for Leases LEARNING OBJECTIVES After studying this chapter, you should be able to: 21-2 1. Explain
Types of Leases. Lease Financing
Lease Financing Types of leases Tax treatment of leases Effects on financial statements Lessee s analysis Lessor s analysis Other issues in lease analysis Who are the two parties to a lease transaction?
Patricia McConnell: Will the elimination of operating lease accounting improve financial reporting by lessees?
Patricia McConnell: Will the elimination of operating lease accounting improve financial reporting by lessees? 24 June 2010 To address investors concerns about off-balance sheet assets and liabilities
Accounting for Leases
Accounting for Leases 15.511 Corporate Accounting Summer 2004 Professor SP Kothari Sloan School of Management Massachusetts Institute of Technology July 6, 2004 1 Agenda Understand the rationale for leasing
Chapter 11. Long-Term Liabilities Notes, Bonds, and Leases
1 Chapter 11 Long-Term Liabilities Notes, Bonds, and Leases 2 Long-Term Liabilities 3 Economic Consequences of Reporting Long-Term Liabilities Improved credit ratings can lead to lower borrowing costs
Short term leases, defined as a lease term of one year or less, are to be accounted for under the same operating lease method that currently exists.
Lease Accounting Updated January 2014 Page 1 Lease Accounting The pending changes in lease accounting have been a hot topic item since 2009, when the Financial Accounting Standards Board (FASB) and International
Reporting and Interpreting Liabilities Irwin/McGraw-Hill
Chapter 9 Reporting and Interpreting Liabilities Business Background The acquisition of assets is financed from two sources: Debt - funds from creditors Equity - funds from owners Business Background The
Copyright 2009 Pearson Education Canada
The consequence of failing to adjust the discount rate for the risk implicit in projects is that the firm will accept high-risk projects, which usually have higher IRR due to their high-risk nature, and
Bonds. Accounting for Long-Term Debt. Agenda Long-Term Debt. 15.501/516 Accounting Spring 2004
Accounting for Long-Term Debt 15.501/516 Accounting Spring 2004 Professor S. Roychowdhury Sloan School of Management Massachusetts Institute of Technology April 5, 2004 1 Agenda Long-Term Debt Extend our
LEASES: ASPE 3065. PMR NOTES HTK Consulting
LEASES: ASPE 3065 Scope The following items are not covered under this section: licensing agreements for items such as motion pictures, videotapes, plays, manuscripts, patents and copyrights Definitions
CIMA F3 Course Notes. Chapter 10. Lease vs Buy
CIMA F3 Course Notes Chapter 10 Lease vs Buy Personal use only - not licensed for use on courses 137 1. Leasing Leasing Leasing is a process by which a firm can obtain the use of a certain fixed assets
International Accounting Standard 17 (IAS 17): Leases
International Accounting Standard 17 (IAS 17): Leases By PAUL YOUNG, CGA This article is part of a series on International Financial Reporting Standards published on PD Net. Introduction Accounting for
11.437 Financing Community Economic Development Class 6: Fixed Asset Financing
11.437 Financing Community Economic Development Class 6: Fixed Asset Financing I. Purpose of asset financing Fixed asset financing refers to the financing for real estate and equipment needs of a business.
New Accounting Standard Brings Big Changes to Lease Reporting on Financial Statements
New Accounting Standard Brings Big Changes to Lease Reporting on Financial Statements The Financial Accounting Standards Board (FASB) has issued its long-awaited update revising the proper treatment of
Accounting for Leases
CHAPTER 21 O BJECTIVES After reading this chapter, you will be able to: 1 Explain the advantages of leasing. 2 Understand key terms related to leasing. 3 Explain how to classify leases of personal property.
418 Chapter 13 Leases
CHAPTER 13 Leases Business firms generally acquire property rights in long-term assets through purchases that are funded by internal sources or by externally borrowed funds. The accounting issues associated
G8 Education Limited ABN: 95 123 828 553. Accounting Policies
G8 Education Limited ABN: 95 123 828 553 Accounting Policies Table of Contents Note 1: Summary of significant accounting policies... 3 (a) Basis of preparation... 3 (b) Principles of consolidation... 3
i) Question Type The following are guidelines on the type of questions and their approximate weightings:
Purpose Financial Accounting: Liabilities & Equities [FA3] Examination Blueprint 2014/2015 The Financial Accounting: Liabilities & Equities [FA3] examination has been constructed using an examination blueprint.
Chapter 20 Lease Financing ANSWERS TO END-OF-CHAPTER QUESTIONS
Chapter 20 Lease Financing ANSWERS TO END-OF-CHAPTER QUESTIONS 20-1 a. The lessee is the party leasing the property. The party receiving the payments from the lease (that is, the owner of the property)
Leases. Objectives. Understand the rationale for leasing and the distinction between Operating and capital leases.
Leases Objectives Understand the rationale for leasing and the distinction between Operating and capital leases. Understand the Income Statement and Balance Sheet differences Between operating and capital
Accounting Is a Language. Financial Accounting: The Balance Sheet BALANCE SHEET. Accounting Information. Assets. Balance Sheet: Layout
Accounting Is a Language Financial Accounting: The Balance Sheet Richard S. Barr Purpose: providing information Financial Statements Summarize accounting information Examples We need to know what the numbers
Brief Report on Closing of Accounts (connection) for the Term Ended March 31, 2007
MARUHAN Co., Ltd. Brief Report on Closing of (connection) for the Term Ended March 31, 2007 (Amounts less than 1 million yen omitted) 1.Business Results for the term ended on March, 2007 (From April 1,
Long Island University C.W. Post GBA 521. Final Exam - review
Long Island University C.W. Post GBA 521 Name: _ (Last name) (First name) Date: _ Final Exam - review Multiple Choice Following are 14 multiple choice questions, worth 3 points each. Clearly identify the
LEASES: IAS 17. PMR NOTES HTK Consulting
LEASES: IAS 17 Scope This section does not apply to the following: Investment properties held by lessees (finance or operating) that are accounted for as an investment property (see IAS 40) Investment
Ratio Analysis: Liquidity, Activity & Coverage
Ratio Analysis: Liquidity, Activity & Coverage Quality of Earnings Fraudulent actions Above-average financial risk One-time transactions Borrow from the future/reach into the past Ride the depreciation
The Depository Trust Company
The Depository Trust Company Unaudited Condensed Consolidated Financial Statements as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 THE DEPOSITORY TRUST
LEASES SCOPE/EXCLUSIONS
LEASES SCOPE/EXCLUSIONS What is a lease? A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of
Consolidated Balance Sheets March 31, 2001 and 2000
Financial Statements SEIKAGAKU CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidated Balance Sheets March 31, 2001 and 2000 Assets Current assets: Cash and cash equivalents... Short-term investments (Note
Measurement Concepts for Banking, Trading, and Investing
Banking,, Banking,, for the MFM Orientation September 1, 2010 Banking,, If you are going to work with bankers, traders, or investment managers, it is important for you to understand the language and concepts
15.511 Corporate Accounting Recitation 6. July 7, 2004
15.511 Corporate Accounting Recitation 6 July 7, 2004 1 Agenda Marketable Securities (lecture notes) Bonds Leases Deferred tax 2 Accounting for Bonds -Terminology Par value Proceeds from issuance Coupon
SUMITOMO DENSETSU CO., LTD. AND SUBSIDIARIES. Consolidated Financial Statements
SUMITOMO DENSETSU CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements Report of Independent Public Accountants To the Board of Directors of Sumitomo Densetsu Co., Ltd. : We have audited the consolidated
CAPITAL STRUCTURE [Chapter 15 and Chapter 16]
![CAPITAL STRUCTURE [Chapter 15 and Chapter 16]](/thumbs/34/17057255.jpg "CAPITAL STRUCTURE [Chapter 15 and Chapter 16]")
Capital Structure [CHAP. 15 & 16] -1 CAPITAL STRUCTURE [Chapter 15 and Chapter 16] CONTENTS I. Introduction II. Capital Structure & Firm Value WITHOUT Taxes III. Capital Structure & Firm Value WITH Corporate
How To Value Bonds
Chapter 6 Interest Rates And Bond Valuation Learning Goals 1. Describe interest rate fundamentals, the term structure of interest rates, and risk premiums. 2. Review the legal aspects of bond financing
Consolidated Financial Statements
Consolidated Financial Statements For the year ended February 20, 2016 Nitori Holdings Co., Ltd. Consolidated Balance Sheet Nitori Holdings Co., Ltd. and consolidated subsidiaries As at February 20, 2016
EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION (in thousands, except per share data) (unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION (in thousands, except per share data) Recurring revenues $ 314,727 $ 282,117 $ 216,517 $ 834,080 $ 610,384 Non-recurring revenues 15,620
Lease Accounting HARVARD UNIVERSITY FINANCIAL POLICY. Policy Statement. Reason for Policy. Who Must Comply. Procedures
HARVARD UNIVERSITY FINANCIAL POLICY Responsible Office: Financial Accounting and Reporting Date First Effective: 7/1/2014 Revision Date: N/A Lease Accounting Policy Statement This policy establishes accounting
Accounting Self Study Guide for Staff of Micro Finance Institutions
Accounting Self Study Guide for Staff of Micro Finance Institutions LESSON 5 Summarizing Changes in Financial Position OBJECTIVES The purpose of this lesson is to show how to summarize the transactions
Mezzanine Finance. by Corry Silbernagel Davis Vaitkunas Bond Capital. With a supplement by Ian Giddy
Mezzanine Finance by Corry Silbernagel Davis Vaitkunas Bond Capital With a supplement by Ian Giddy Mezzanine Debt--Another Level To Consider Mezzanine debt is used by companies that are cash flow positive
The Debt-Equity Trade Off: The Capital Structure Decision
The Debt-Equity Trade Off: The Capital Structure Decision Aswath Damodaran Stern School of Business Aswath Damodaran 1 First Principles Invest in projects that yield a return greater than the minimum acceptable
Crown Castle International Corp. Consolidating Income Statement Unaudited Consolidated Statement of Operations (in millions of dollars)
Consolidating Income Statement Unaudited Consolidated Statement of Operations CCIC Consolidated Revenues Site Rental 406.9 409.6 437.1 447.2 1,700.8 456.2 457.1 468.9 Network Services and Other 37.5 46.5
Long-Term Debt. Objectives: simple present value calculations. Understand the terminology of long-term debt Par value Discount vs.
Objectives: Long-Term Debt! Extend our understanding of valuation methods beyond simple present value calculations. Understand the terminology of long-term debt Par value Discount vs. Premium Mortgages!
This policy sets forth system-wide standards for financial accounting and reporting of leases.
Accounting for Leases Section: Accounting and Financial Reporting Title: Accounting for Leases Number: 05.281 Index POLICY.100 POLICY STATEMENT.110 POLICY RATIONALE.120 AUTHORITY.130 APPROVAL AND EFFECTIVE
finreporting.com free online financial services
LEASE ACCOUNTING -LESSEE POLICY PERSPECTIVE A Lease is defined as an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets) for a stated period of time. This
FINANCIAL MANAGEMENT
100 Arbor Drive, Suite 108 Christiansburg, VA 24073 Voice: 540-381-9333 FAX: 540-381-8319 www.becpas.com Providing Professional Business Advisory & Consulting Services Douglas L. Johnston, II djohnston@becpas.com
Chapter 5: Valuing Bonds
FIN 302 Class Notes Chapter 5: Valuing Bonds What is a bond? A long-term debt instrument A contract where a borrower agrees to make interest and principal payments on specific dates Corporate Bond Quotations
Effects analysis for leases (IASB-only) 1. Summary. Changes being proposed to the accounting requirements. Page 1 of 34
Effects analysis for leases (IASB-only) 1 BC329 The IASB is committed to assessing and sharing knowledge about the likely costs of implementing proposed new requirements and the likely ongoing associated
Financial ratio analysis
Financial ratio analysis A reading prepared by Pamela Peterson Drake O U T L I N E 1. Introduction 2. Liquidity ratios 3. Profitability ratios and activity ratios 4. Financial leverage ratios 5. Shareholder
BA 351 CORPORATE FINANCE. John R. Graham Adapted from S. Viswanathan LECTURE 5 LEASING FUQUA SCHOOL OF BUSINESS DUKE UNIVERSITY
BA 351 CORPORATE FINANCE John R. Graham Adapted from S. Viswanathan LECTURE 5 LEASING FUQUA SCHOOL OF BUSINESS DUKE UNIVERSITY 1 Leasing has long been an important alternative to buying an asset. In this
ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION
ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION OCTOBER 2006 Table of Contents 1. INTRODUCTION... 3 2. FINANCIAL RATIOS FOR COMPANIES (INDUSTRY - COMMERCE - SERVICES) 4 2.1 Profitability Ratios...4 2.2 Viability
Long-term sources - those repayable beyond 1 year. No guaranteed return, but potential is unlimited. High risks require a high rate of return.
Sources of Finance Ord Shares Total Finance Long Short Term Term Pref Shares Loans & Debens Bank O/D Leases Debt Factoring Long-term sources - those repayable beyond 1 year. Ordinary Shares The risk capital
Accounting for Bonds and Long-Term Notes
Accounting for Bonds and Long-Term Notes Bond Premiums and Discounts Effective interest method Bond issuance Interest expense Types of Debt Instruments Zero-Coupon Bonds Convertible Bonds Detachable Warrants
Click Here to Buy the Tutorial
FIN 534 Week 4 Quiz 3 (Str) Click Here to Buy the Tutorial http://www.tutorialoutlet.com/fin-534/fin-534-week-4-quiz-3- str/ For more course tutorials visit www.tutorialoutlet.com Which of the following
Unit 6 Receivables. Receivables - Claims resulting from credit sales to customers and others goods or services for money,.
Unit 6 Receivables 7-1 Receivables - Claims resulting from credit sales to customers and others goods or services for money,. Oral promises of the purchaser to pay for goods and services sold (credit sale;
Analyzing Financing Activities
Analyzing Financing Activities REVIEW Business activities are financed through either liabilities or equity. Liabilities are obligations requiring payment of money, rendering of future services, or dispensing
The key elements of GSL V s strategy are (see Item 1. Business of the Crown Castle 10-K for further discussion):
Management s Discussion and Analysis of Financial Condition and Results of Operations The following management s discussion and analysis ( MD&A ) of the combined financial condition and results of operations
CHAE Review. Capital Leases & Forms of Business
CHAE Review Financial Statements, Capital Leases & Forms of Business This is a complete review of the two volume text book, Certified Hospitality Accountant Executive Study Guide, as published by The Educational
Consolidated Balance Sheets
Consolidated Balance Sheets March 31 2015 2014 2015 Assets: Current assets Cash and cash equivalents 726,888 604,571 $ 6,057,400 Marketable securities 19,033 16,635 158,608 Notes and accounts receivable:
Residual Values Accounting for Exchanges of Risk and Value
Residual Values Accounting for Exchanges of Risk and Value Conservatism must be your guide. Equipment ownership is a hallmark of equipment leasing that sets it apart from other types of financing transactions.
Chapter 16 Hybrid and Derivative Securities
Chapter 16 Hybrid and Derivative Securities Solutions to Problems P16-1. LG 2: Lease Cash Flows Basic Firm Lease Payment Tax Benefit After-tax Cash Outflow [(1) (2)] Year (1) (2) (3) A 1 4 $1 00,000 $
EMERSON AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) TABLE 1 Quarter Ended March 31, Percent Change Net Sales $ 5,854 $ 5,919 1% Costs and expenses: Cost of sales 3,548 3,583
Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows
Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF
Financial Formulas. 5/2000 Chapter 3 Financial Formulas i
Financial Formulas 3 Financial Formulas i In this chapter 1 Formulas Used in Financial Calculations 1 Statements of Changes in Financial Position (Total $) 1 Cash Flow ($ millions) 1 Statements of Changes
Create an action plan to prepare for the new lease accounting standard
IBM Software Thought Leadership White Paper May 2012 Create an action plan to prepare for the new lease accounting standard William Bosco, president, Leasing 101 2 Create an action plan to prepare for
CHAPTER 14 COST OF CAPITAL
CHAPTER 14 COST OF CAPITAL Answers to Concepts Review and Critical Thinking Questions 1. It is the minimum rate of return the firm must earn overall on its existing assets. If it earns more than this,
Types of Leases. Lease Financing. FINC 3630 Yost
Lease Financing Types of Leases Operating Leases Financial Leases or Capital Leases Sale and Leaseback Arrangements Combination Leases Synthetic Leases Operating Leases Payments include maintenance and
Off-Balance Sheet Financing Techniques
Off-Balance Sheet Financing Techniques (1) Leases Firms which have noncancelable operating leases have de facto debt. The following adjustment procedure is appropriate. Calculate Present Value of future
Dealing with Operating Leases in Valuation. Aswath Damodaran. Stern School of Business. 44 West Fourth Street. New York, NY 10012
Dealing with Operating Leases in Valuation Aswath Damodaran Stern School of Business 44 West Fourth Street New York, NY 10012 adamodar@stern.nyu.edu Abstract Most firm valuation models start with the after-tax
ELA Lease Accountants Conference
ELA Lease Accountants Conference Advanced Leveraged Leasing Financial Reporting Issues September 21, 2004 Betty Davis Washington, DC Discussion Items: Qualification issues Assumption changes Buying, selling
PRESENTATION SUMMARY:
PRESENTATION SUMMARY: CONSULTING SERVICES INCLUDING CAPITAL EQUIPMENT LEASING INTRODUCTION FOR BY: Year June-2003 PowerLease Solutions Products Menu of Financing Products: 1. Fair Market Value Leases (Non-Compliance-Capital
CHAPTER 14. Long-Term Liabilities 1, 10, 14, 20 2, 3, 4, 9, 10, 11 1, 2, 3, 4, 5, 6, 7 5, 6, 7, 8, 11 3, 4, 6, 7, 8, 10 12, 13 11 12, 13, 14, 15
CHAPTER 14 Long-Term Liabilities ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Long-term liability; classification; definitions.
You just paid $350,000 for a policy that will pay you and your heirs $12,000 a year forever. What rate of return are you earning on this policy?
1 You estimate that you will have $24,500 in student loans by the time you graduate. The interest rate is 6.5%. If you want to have this debt paid in full within five years, how much must you pay each
Consolidated Financial Results for Six Months Ended September 30, 2007
Consolidated Financial Results for Six Months Ended September 30, 2007 SOHGO SECURITY SERVICES CO., LTD (URL http://ir.alsok.co.jp/english) (Code No.:2331, TSE 1 st Sec.) Representative: Atsushi Murai,
(unaudited expressed in Canadian Dollars)
Condensed Consolidated Interim Financial Statements of CARGOJET INC. For the three month periods ended (unaudited expressed in Canadian Dollars) This page intentionally left blank Condensed Consolidated
IF THE LEASE MEETS ONE OR MORE OF THE FOLLOWING FOUR CRITERIA, THE LESSEE MUST CLASSIFY AND ACCOUNT FOR THE ARRANGEMENT AS A CAPITAL LEASE:
ILLUSTRATION 22-1 LESSEE'S CAPITALIZATION CRITERIA IF THE LEASE MEETS ONE OR MORE OF THE FOLLOWING FOUR CRITERIA, THE LESSEE MUST CLASSIFY AND ACCOUNT FOR THE ARRANGEMENT AS A CAPITAL LEASE: 1. THE LEASE
ACCOUNTING FOR LEASES AND HIRE PURCHASE CONTRACTS
Issued 07/85 Revised 06/90 New Zealand Society of Accountants STATEMENT OF STANDARD ACCOUNTING PRACTICE NO. 18 Revised 1990 ACCOUNTING FOR LEASES AND HIRE PURCHASE CONTRACTS Issued by the Council, New
Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Income (Unaudited)
Consolidated Statements of Income Fourth Quarter Years ended December 31, 2015 2014 2015 2014 ($ in millions, except per share amounts) Railway operating revenues Coal $ 433 $ 543 $ 1,823 $ 2,382 General
Chapter 14 Capital Structure in a Perfect Market
Chapter 14 Capital Structure in a Perfect Market 14-1. Consider a project with free cash flows in one year of $130,000 or $180,000, with each outcome being equally likely. The initial investment required
THE LEASE VERSUS BUY DECISION
Over the past thirty years, U.S. Bancorp Equipment Finance has grown into one of the largest bank affiliated industrial finance companies in the nation. With total assets in excess of $8 Billion and offices
In October 1997, Hewlett-Packard issued zero coupon bonds with a face value of $1.8 million, due in 2017, for proceeds of $968 million.
BE11-2 In October 1997, Hewlett-Packard issued zero coupon bonds with a face value of $1.8 million, due in 2017, for proceeds of $968 million. (a) What is the life of these bonds? The life of the bonds
AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions)
CONSOLIDATED STATEMENTS OF CASH FLOWS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 8,084 $ 5,269 $ 3,777 OPERATING ACTIVITIES: Net income (loss) 274 (39) 631 Adjustments to reconcile net income (loss)
Operating Revenues Service revenues and other $ 28,217 $ 28,611 (1.4) Wireless equipment revenues 3,954 3,373 17.2 Total Operating Revenues
Condensed Consolidated Statements of Income (dollars in millions, except per share amounts) Operating Revenues Service revenues and other $ 28,217 $ 28,611 (1.4) Wireless equipment revenues 3,954 3,373