Lease Classification Sample Clauses
Lease Classification. HLL shall have received advice from Ernst & Young LLP, in form and substance satisfactory to HLL, to the effect that the transactions contemplated by the Transaction Documents qualify as operating leases for HLL under United States generally accepted accounting principles for financial reporting purposes.
Lease Classification. If at its inception a lease satisf ies one or more of
Lease Classification. In order to classify a lease and accurately quantify the on-going financial and accounting implications, all potential property leases must be assessed by the Force’s Financial Accounting team prior to the lease being signed. The Force’s Financial Accounting team will undertake a simple financial test and consider the terms of the proposed lease against a checklist, in order to decide whether the lease should be classified as an operating or a finance lease. To complete this process, the Force’s Financial Accounting Team requires the following information: • Proposed lease payment per annum. • Proposed lease term – including, if applicable, details of any break points where the lease could either be terminated or extended. • Estimated purchase price of an equivalent asset – it is extremely important that these estimates can be substantiated, and all estimates should be based on professional advice. • Proposed terms and conditions of the lease – if available a draft copy of the lease should be sent to the Financial Accounting Team. In particular, details of associated property costs (e.g. buildings insurance and maintenance costs, utility costs, service charges) and whether the lessor or the PCC will be responsible for such costs once the lease is signed. • Contact details of a named individual – the Financial Accounting team may need to discuss the proposed lease, or request further information. In order to request a lease test, please contact Financial Accounting. The proposed lease will then be assessed, and the results fed back to the originating department as soon as possible. The CC’s CFO may acquire freeholds up to £500,000 and leaseholds with a contract rental value of up to £500,000 over the lifetime of the lease, in the name of the Police and Crime Commissioner. The CC’s CFO may approve all requests to grant a lease with a total contract value up to £500,000 over the lifetime of the lease