If you have a fixed-term lease
, you cannot leave before the lease ends or you risk paying damages to the landlord for breaching your lease agreement.
For example, with a fixed-price, fixed-term lease
(similar to NASA's lease of the Mir space station), it would be possible to fund reusable launch vehicles, space tugs, and so forth.
The new fixed-term lease
law introduced in March of this year affords greater protection to building owners with respect to lease enforcement.
The Consumer Ombudsman has pointed out that although both packages are advertised as containing a "free computer" NIC Net is actually offering a hire-purchase arrangement while Sonera's package is a fixed-term lease
where the consumer can neither purchase the computer after the end of the lease nor install additional equipment or software.
However, for governments with traditional fixed-term leases
, hopefully this article will make the main features of the new standard a little easier to understand and enable a smoother, less stressful transition.
Interestingly, the ED proposes a rather ingenious conceptual solution to the dilemma posed by I) requiring all fixed-term leases
to be recorded as liabilities on the balance sheet, but 2) avoiding the front-loading of expense recognition that previously resulted from capitalizing a lease.
Traditional valuation approaches that have been used for conventional fixed-term leases
are not appropriate for pricing flexible leases.
As common hold will replace fixed-term leases
, owners will not be confronted with the problem of wasting assets as leases run down.
Late in 2002 St Modwen bought the Alstom Transport train making site at Washwood Heath in Birmingham as part of a pounds 111 million sale and leaseback deal with the debt-laden French group, which took fixed-term leases
of between five and 15 years on most of the properties.