Bear Minimum Essay Example for Free

Bear Minimum Essay The lease of a combustion turbine by Big Bear Power from Goliath Co includes three provisions that we must examine to determine whether they should be included in the â€Å"minimum lease payment† as defined in ASC 840. Provision 1 This provision involves Big Bear paying $500,000 to its external counsel, and $1 million of legal fees to Goliath Co. The $1 million fee to Goliath Co. should be included in the minimum lease payment. This is supported by 840-10-25-6 which states: Fees that are paid by the lessee to the owners of the special-purpose entity for structuring the lease transaction†¦shall be included as part of minimum lease payments. The $500,000 to its external counsel should not be included because it was not an obligatory cost for the lease. Provision 2 To determine if the penalty payment from a default would be included in the minimum lease payment, we look at ASC 840-10-25-14: [Default covenants related to nonperformance do not affect lease classification if all of the following conditions exist: a. The default covenant provision is customary in financing arrangements. b. The occurrence of the event of default is objectively determinable (for example, subjective acceleration clauses would not satisfy this condition). c. Predefined criteria, related solely to the lessee and its operations, have been established for the determination of the event of default. d. It is reasonable to assume, based on the facts and circumstances that exist at lease inception, that the event of default will not occur. In applying this condition, it is expected that entities would consider recent trends in the lessee’s operations. If any of those conditions do not exist, then the maximum amount that the lessee could be required to pay under the default covenant shall be included in minimum lease payments for purposes of applying paragraph 840-10-25-1] The first condition about the default covenant provision being customary does exist due to the note stating that â€Å"this is a customary provision in  leasing arrangements†. The company has positive cash flow and is in compliance with all its debt covenants, which supports Big Bear’s belief that the chance of default is low. Thus conditions 2 and 4 are met. Condition 3, which involves predetermined criteria in case of a default, does not seem to have been met. Since not all the conditions have been met, the default payment covenant shall be included in the minimum lease payment. Provision 3 This provision states that Big Bear’s rent of $1 million will increase by the same percentage increase in the CPI. The most recent annual increase in CPI was 4%. 840-10-25-4 states that â€Å"lease payments that depend on an existing index or sate, such as the CPI or prime interest rate, shall be included in minimum lease payments based on the index†. Therefore after the first year, the minimum lease payment will rise by $40,000 per year or $3,333.33 per month. Bear Minimum. (2016, Mar 04).

Writing Fundmentals Essay Example | Topics and Well Written Essays - 250 words

Writing Fundmentals - Essay Example In the first paragraph, Ruth Winter is only five years old. After a year, she joins school in the second paragraph, and she is now six years old. The third paragraph in this essay is set during the summer of  the authors  second grade, which means that Winter is seven years old, and a few months shy off eight years. The fourth paragraph in the essay is set when Winter is in her third grade of school, which puts her age at eight years. In the fifth paragraph, Winter is ten years old while she attains the age of eleven years and she is in  her high school education in the sixth paragraph. In the final paragraph, Winter is eighteen years old. The article by Roach may be a little disturbing, but it is also fascinating in the same breathe. In this case, the author visits a medical facility where dead bodies are donated for research. Roach uses humor to explain the crucial role that these dead bodies play  since  surgeons use them to practice  before an actual brain surgery, which highlights the critical role of the heads of the dead bodies in surgical procedures to save

Employee training at B&Q Plc Essay Example | Topics and Well Written Essays - 2000 words

Employee training at B&Q Plc - Essay Example There has been a various change in the employment policy at B&Q Plc. over the past decade. About a decade ago, many business analysts criticized B&Q Plc. For having a policy that encouraged to employ and retaining much older employees. At that time younger job seekers were less advantaged when they were seeking jobs at the company. The company has always considered quality of their products and services to be their first priority. Therefore, employing older employees was seen as a way through which the company could be able to get experience and skills in a single package (Saks, Haccoun& Belcourt 2010, p. 101. At that time this really worked for them especially because they were able to build a reputation that was rooted on quality. There is always some uncertainty regarding employing younger employees. Younger employees might be skilled by the obvious reason as to why employing them might not be a good idea is the fact that it might take a while before they attain the experience that the older employees have. However, the good thing is that this is a problem that can be properly solved by having a good training program. As for the case of B&Q Plc. mentoring was chosen as the most appropriate way of making sure that the company will be able to accommodate both the young and energetic employees and the old and experienced employees (Becker 1993, p. 123). This method can be said to have worked well for the company.