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.
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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
Lease Classification. If at its inception a lease satisf ies one or more of f our criteria, it is classif ied as a capital lease. The lease contains a bargain purchase option Lease Classification If at its inception a lease satisf ies one or more of 3 f our criteria, it is classif ied as a capital lease. The noncancelable lease term is 75 % or more of the estimated economic li f e of the asset. Lease Classification If at its inception a lease satisf ies one or more of f our criteria, it is classif ied as a capital lease. The present value of the minimum lease payments equals or exceeds 90 % of the f air value of the leased asset. Lease Classification Leases that do not satisf y any of the f our criteria are classif ied as operating leases. Capital Leases OIf an asset is classif ied as a capit al lease, the lessee must record an asset and a liability equal to the present value of the minimum lease payments . OLease payments are allocated between interest expense and principal payment using the eff ective interest method. Capital Leases Minimum Lease payments include: • Amounts of periodic paymentsResidual value guarantees • Amount of bargain purchase option • Penalties for nonrenewal • Executory costs are not included Financial Statement Effects OUnder an operating lease total expenses equal total cash f low OUnder a capit al lease total expense equals the sum of the interest payments and the amortization of the leased asset. Financial Statement Effects OOperating and capit al leases give identical cumulative li f etime charges to expense. OThe timing of the expense charges diff ers between the two methods. The capital lease approach leads to higher expense charges in the earlier years. Financial Statement Effects OLessees pref er operating leases f or two reasons. • Operating leases permit “off balance sheet financing.” • Capital leases accelerate expense recognition. OFootnote disclosures enable analysts to make lease comparisons. Lessor Accounting For the lessor two criteria must be met to classif y the lease as a capital lease. • The lease must transfer property rights to the lessee (using the four criteria). • The lease agreement must allow reasonably accurate estimates of lease net cash flows and their collectability. Lessor Accounting For the lessor capital leases may be one of two types • A sales-type lease exists when the lessor is either the manufacturer of the leased asset or a dealer who sells the equipment • A direct financing lease exists when the lessor is a fi...

Related to Lease Classification

  • Tax Classification The Series shall elect to be treated as an association taxable as a corporation under Treasury Regulations Section 301.7701-3 with effect for each taxable period of its existence. The Series and each Member shall file all tax returns and shall otherwise take all tax and financial reporting positions in a manner consistent with such treatment. No election will be filed with the Internal Revenue Service (or the tax authorities of any State) to have the Series taxable other than as an association taxable as a corporation for income tax purposes.

  • New Classification When a new classification (which is covered by the terms of this agreement) is established by the Home, the Home shall determine the rate of pay for such new classification and notify the Local Union of the same within seven (7) days. If the Local Union challenges the rate, it shall have the right to request a meeting with the Home to endeavour to negotiate a mutually satisfactory rate. Such request will be made within ten (10) days after the receipt of notice from the Home of such new occupational classification and rate. Any change mutually agreed to resulting from such meeting shall be retroactive to the date that notice of the new rate was given by the Home. If the parties are unable to agree, the dispute concerning the new rate may be submitted to arbitration as provided in the Agreement within fifteen (15) days of such meeting. The decision of the Board of Arbitration (or arbitrator as the case may be) shall be based on the relationship established by comparison with the rates for other classifications in the bargaining unit having regard to the requirements of such classification. When the Home makes a substantial change during the term of the Agreement in the job content of an existing classification which in reality causes such classification to become a new classification, the Home agrees to meet with the Union if requested to permit the Union to make representation with respect to the appropriate rate of pay. If the matter is not resolved following the meeting with the Union the matter may be referred to arbitration as provided in the Agreement within fifteen (15) days of such meeting. The decision of the Board of Arbitration (or arbitrator as the case may be) shall be based on the relationship established by comparison with the rates for other classifications in the bargaining unit having regard to the requirements of such classifications. The parties further agree that any change mutually agreed to or awarded as a result of arbitration shall be retroactive only to the date that the Union raised the issue with the Home.

  • Job Classification When a new classification (which is covered by the terms of this Collective Agreement) is established by the Hospital, the Hospital shall determine the rate of pay for such new classification and notify the local Union of the same. If the local Union challenges the rate, it shall have the right to request a meeting with the Hospital to endeavour to negotiate a mutually satisfactory rate. Such request will be made within ten (10) days after the receipt of notice from the Hospital of such new occupational classification and rate. Any change mutually agreed to resulting from such meeting shall be retroactive to the date that notice of the new rate was given by the Hospital. If the parties are unable to agree, the dispute concerning the new rate may be submitted to arbitration as provided in the Agreement within fifteen (15) days of such meeting. The decision of the Board of Arbitration (or arbitrator as the case may be) shall be based on the relationship established by comparison with the rates for other classifications in the bargaining unit having regard to the requirements of such classification. When the Hospital makes a substantial change in the job content of an existing classification which in reality causes such classification to become a new classification, the Hospital agrees to meet with the Union if requested to permit the Union to make representation with respect to the appropriate rate of pay. If the matter is not resolved following the meeting with the Union the matter may be referred to Arbitration as provided in the Agreement within fifteen (15) days of such meeting. The decision of the Board of Arbitration (or arbitrator as the case may be) shall be based on the relationship established by comparison with the rates for other classifications in the bargaining unit having regard to the requirements of such classifications. The parties further agree that any change mutually agreed to or awarded as a result of arbitration shall be retroactive only to the date that the Union raised the issue with the Hospital. Notwithstanding the foregoing, if as a result of compensable illness or injury covered by WSIB an employee is unable to carry out the regular functions of her position, the Hospital may, subject to its operational requirements, establish a special classification and salary in an endeavour to provide the employee with an opportunity of continued employment. This provision shall not be construed as a guarantee that such special classification(s) will be made available or continued.

  • New Classifications If a new classification is created within the bargaining unit, the Employer agrees to meet with the Union and negotiate a rate of pay for this new classification. If the parties cannot reach agreement, at the request of either party, the matter shall be submitted to the arbitration procedure in Article 26 of this Agreement.

  • New Job Classifications 11.1 Whenever the Company determines it appropriate to create a new job classification in the bargaining unit, it shall proceed as follows.

  • FURNITURE CLASSIFICATIONS Furniture classifications include but not limited to: Cafeteria, Dormitory, Library Shelving and Library Related, Lounge, Systems (Modular), School (Classroom), Freestanding, Seating, Filing Systems and Equipment, and Technology Support.

  • JOB CLASSIFICATIONS For the purpose of this Agreement the following classifications will be applicable:

  • Position Classification 1. The requirements of each position will be documented by a Position Description developed by reference to the Position Description Questionnaire (PDQ), and classified into a salary grade consistent with the Position Description and classifications for corresponding job duties found throughout the USNH System and according to USNH policy and processed by the KSC Office of Human Resources.

  • Repair and classification Each Borrower shall keep the Ship owned by it in a good and safe condition and state of repair:

  • Client Classification 7.1. We shall not have an obligation to treat our clients in different classes depending on their knowledge and expertise.

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