Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Off balance sheet financing?
A finance charter exists when the substance of the lease is that the lessee enjoys substantially all of the risks and rewards of ownership even though legal title to the leased asset doesn't pass from lessor to lessee. A finance lease is thus characterised by one lessee for most if not all of its useful economic life with the lessee meeting maintenance and similar regular costs.
A finance lease can't be cancelled once entered into without incurring severe financial penalties. A finance lease thus acts as a kind of medium-to long-term source of debt finance which in substance permits the lessee to purchase the desired asset. This ownership dimension is documented in the statement of financial position where a finance-leased asset should be capitalised as a fixed asset mutually with the amount of the obligations to make lease payments in future periods (as a liability).
In compare an operating lease is a rental agreement where several lessees are expected to use the leased asset and therefore the lease period is much shorter than the asset's useful economic life.
Maintenance and comparable costs are borne by the lessor with this cost being reflected in the lease rentals charged. An operating lease is able to usually be cancelled without penalty at short notice. This permits the lessee to ensure that only up-to-date assets are leased for use in business operations avoid the obsolescence problem associated with the rapid pace of technological change in assets such as personal computers and photocopiers. For the reason that the substance of an operating lease is that of a short-term rental agreement operating leases don't require to be capitalised in the statement of financial position allowing companies to take advantage of this form of "off balance sheet financing.
The intestate leaves one surviving spouse, but no child or children The surviving spouse is entitled to: 1. The personal and household effects of the deceased absolutely: "per
Q. Participation of Employees in Management? To facilitate meaningful and effective participation of workers in the management process it was decided in March 1994 that the Cor
Debra Motors's 14% coupon rate, semiannual payment, $1,000 par value bonds that mature in 20 years are callable 3 years from now at a price of $1,075. The bonds sell at a price of
Given information: Offered a $20 million commercial loan priced using a 3month LIBOR index+100bp. After some preliminary research, using a money center bank's swap trading desk
Your company is considering investing in its own transport fleet. The present position is that carriage is contracted to an outside organization. The life of the transport fleet w
Division of the trust The safeguards consist in the division of the trust funds into portions. Before this division takes place, the investments are revalued in order to deter
Peer Review - Process by which an accounting firm's practice is evaluated for compliance with professional standards. Objective is achieved through the performance of an independen
Arnot International's bonds have a present market price of $1,250. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may
Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $243,339, $313,087, and $415,174, respectively
You are an analyst in the corporate finance department of Pet Products, Inc. You have been asked to analyze a potential new product to be introduced. The beef-flavored water will b
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd