use of that 5-step process in two lease-purchase decision examples using nominal discount rates. You should follow the same steps for any net present value analysis whether you are using nominal discount rates or real discount rates. Lease-Purchase Decision Example 1. Assume that you want to determine which of the following proposals will result in the lowest total cost of acquisition? Offeror A: Proposes to lease the asset for 3 years. The annual lease payments are $10‚000 per year. The
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classified as a fixture. established the degree of annexation and purpose tests. Definitions Freehold-unlimited time‚ leasehold-limited time. Should be capable of existing forever. Leasehold- Limited amount of time‚ depending on the lease. Easement= gives the right to use the land of another in some way‚ or to prevent it from being used for certain purposes‚ e.g. rights of way and rights of water and light. Profit= gives the right to take something from the land of another e.g. peat
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the leaseback. However‚ a repurchase option changes how the sale-leaseback arrangement is reported for accounting purposes. The lease will be recorded as an asset and capitalized‚ and the obligation to make the future lease payments will be shown as a liability. At the end of a lease without any renewal options‚ the seller may have to negotiate an extension of the lease at current market rent or may be forced to relocate its business. The interest rate in a sale-leaseback arrangement generally is
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Acc/421 Week 4 Learning Team Assignments PROBLEM 5-3 Side Kicks Company Balance Sheet December 31‚ 2007 Assets Current assets Cash $ 41‚000 Accounts receivable $163‚500 Less: Allowance for uncertain accounts 8‚700 154‚800 Inventory—at LIFO cost 308‚500 Prepaid insurance 5‚900 Total existing assets $ 510‚200 Long-term investments Investments in stocks
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National Institute of Business Management Chennai - 020 EMBA/ MBA Elective: Financial Management (Part - 2) Attend any 4 questions. Each question carries 25 marks (Each answer should be of minimum 2 pages / of 300 words) 1. Discuss the main sources of capital to finance capital expenditure. 2. Explain the factors considered as regards to a company’s decision to use debt or equity. 3. Describe the advantages of Leasing. 4. Describe the concept of Working Capital. 5. Explain the techniques designed
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Frameworks: Frameworks are boundaries for accountant and made up by PRINCIPLE and RULES. There are Two types of framework – 1. Conceptual: Conceptual are made up by historical practice that are done by people like- IAS‚ GAAP etc. 2. Regulatory: Regulatory are boundaries of rules and regulation like- Company law‚ National standards of accounting‚ Stock exchange regulation‚ Sometimes IAS if country adopt it etc. Usefulness and Requirement of Frameworks: 1. Framework develops over hundred years
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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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Pantaloons Retail India Limited The Accounting Standards as per their 2011-12 Annual Report are- 1. AS 1: Disclosure of Accounting Policies- * It deals with disclosure of Accounting Principles and policies used for preparation of financial statements of the companies. 2. AS 2: Valuation of Inventories- * It deals with determination of amount of inventory to be shown in financial statements. It is not applicable to shares‚ debentures‚ stock etc. The cost formulae prescribed
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war. Everything after this would lead the Americans to understand the need for a democratic government and the end of unfair views. At the point where the United States couldn’t avoid being a part of the war Is when Roosevelt realised the Lend Lease Act. In my opinion this is Roosevelt making the decision that we are going to be a part of this war one way or another. This act made it able
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March 2011 THAI MINING LEGISLATION 1. Laws Governing Exploration and Mining The principal law is the Minerals Act (1967)‚ last amended in 2002 by Minerals Act No. 5. The act governs onshore and offshore exploration‚ mineral production‚ mineral trading‚ oredressing‚ transport and export of minerals‚ other than petroleum. The Department of Primary Industry and Mining (“DPIM”) is empowered to administer the Minerals Act and to issue ministerial regulations. DPIM also provides technical assistance in
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