Lease Accounting. Notwithstanding any other provision contained herein, each financial covenant, ratio, accounting definition or requirement used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to the adoption of Accounting Standards Updated No. 2016-02 (“ASU 2016-02”) by the Financial Accounting Standards Board such that “Capitalized Leases” shall specifically exclude liabilities that were considered operating lease liabilities under GAAP prior to the adoption of ASU 2016-02; provided that all financial statements delivered pursuant to this Agreement shall, if applicable and solely to the extent reasonably requested by the Administrative Agent, be accompanied by a schedule showing any adjustments necessary to reconcile such financial statements with GAAP prior to the adoption of ASU 2016-02, with respect to such lease liabilities.
Lease Accounting. All terms of an accounting or financial nature used in the Loan Documents shall be construed, and all computations of amounts and ratios referred to therein shall be made, without giving effect to any change to GAAP occurring after the Closing Date as a result of the adoption of any proposals set forth in the Proposed Accounting Standards Update, Leases (Topic 842), issued by the Financial Accounting Standards Board on May 16, 2013, or any other proposals issued by the Financial Accounting Standards Board in connection therewith, in each case if such change would require treating any lease (or similar arrangement conveying the right to use) as a capital lease where such lease (or similar arrangement) was not required to be so treated under GAAP as in effect on the Closing Date.
Lease Accounting. From a lease accounting perspective, we understand that the removal of a price floor is expected to mean that PPAs are less likely to be classified as a lease in the first place. Moreover, in the event that a CfD PPA is classified as a lease, we understand that the likelihood of it being classified as a financial lease requiring consolidation is significantly reduced on the basis that a CfD PPA does not transfer substantially all the risk and reward associated with the output of the plant. Having said that, it is arguable that lease accounting would have becomes less of an issue in any event, regardless of whether a floor price was required or not, on the basis that the new accounting rules due to be published in spring 2013 will most likely remove the requirement to classify a PPA as a lease on the basis that it has a floor price. Credit rating treatment - The credit rating agencies are likely to continue to look through the lease accounting rules to the financial substances (i.e. the way it allocates risk, the exposures entailed and the credit worthiness of the entities involved) of any long term arrangement. Having said that, credit rating agencies might view the removal of price risk inherent in a floor as removing significant risk of financial loss - therefore reducing risk of imputed debt. However the approach of the credit rating agencies is still to be confirmed. The key issue is likely to be their view of the magnitude of the risk being assumed by a PPA provider under a long term 15 year arrangement – in particular: Is a floating payment obligation actually a fixed payment obligation if there is no underlying liquidity in the wholesale electricity market? This is likely to be a more significant risk for those new entrant aggregators who do not have recourse to a “sticky” customer base to pass through any payments in the extent that wholesale liquidity risk dries up. What is the extent of the imbalance risk and what is the size of the discount on the electricity price the offtaker is receiving in return (i.e. level of imbalance risk / return)? It therefore seems that a move to CfDs and the requirement for an index linked PPA with no price floor may ameliorate the credit rating impact of participating in the long term PPA market. However, 15 year commitments underwriting a generator’s long term imbalance and liquidity risk are still likely to have some, yet to be determined, impact on a PPA provider’s credit rating.
Lease Accounting. GASB 87 Estimated Fees and Hours The engagement will be billed on an hourly basis. Services rendered for the GASB 87 engagement will be billed at the following discounted hourly rates: • GASB 87 Technical Leader: $230 per hour for actual time spent • Engagement Director: $170 per hour for actual time spent We used the breakdown of leases provided of 24 land and building leases and 110 equipment and vehicle leases to develop the estimates below.
Lease Accounting. A.1. Description Lease Accounting for the Recipients A.2. Location Borders US A.3. Service Manager TBD A.4. Fees/Charges $8,750/year A.5. Exceptions N/A A.6 Termination Notice 3 months Department: Lease Accounting Department description: Item Classification Re/(O)ccurrence Item comments Straight Line Rent Accounting Accounting On-going Includes: initial calculation, maintenance, journal entries, monthly forecasting, yearly planning, and General Ledger reconciliations of Straight Line Balance Sheet accounts Wire Transfers Task Monthly Initiate wire transfers for rental payments for all APAC stores
Lease Accounting. G.1. Description Lease Accounting for Borders and Books etc — see below for more detailed description
Lease Accounting. Notwithstanding any other provision contained herein, all liability amounts shall be determined excluding any liability relating to any operating lease, all asset amounts shall be determined excluding any right-of-use assets relating to any operating lease, all amortization amounts shall be determined excluding any amortization of a right-of-use asset relating to any operating lease, and all interest amounts shall be determined excluding any deemed interest comprising a portion of fixed rent payable under any operating lease, in each case to the extent that such liability, asset, amortization or interest pertains to an operating lease under which the covenantor or a member of its consolidated group is the lessee and would not have been accounted for as such under GAAP as in effect on December 31, 2015; provided that all financial statements delivered pursuant to this Agreement shall, if applicable and solely to the extent reasonably requested by the Administrative Agent, be accompanied by a schedule showing any adjustments necessary to reconcile such financial statements with GAAP as then in effect.
Lease Accounting. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. In respect of assets taken on operating lease, lease rentals are recognized as an expense in the Statement of Profit and Loss on straight line basis over the lease term unless
