The lessee will treat lease payments as a combination reduction of its lease liability + interest expense, while amortizing the intangible asset itself as expense over the lease term
Barnes & Noble College Booksellers expanded their lease to 81,054 square feet and extended the lease term
1 The lease transfers ownership of the property to the lessee by the end of the lease term
Leasehold improvements placed in service (or contemplated) at or near the beginning of the lease term
are generally amortized on a straight-line basis over the shorter of the estimated useful life of the assets or the lease term
3 million per year in rent during the initial lease term
When you're paying cash, or would be satisfied keeping the equipment far beyond a normal lease term
The initial lease payments under the initial S term equaled the loan's debt service; thus, the ruling did not mention any free cash-flow to X during the base lease term
If the transaction allows for a renewal at the end of the original lease term
, the renewal rate must be set at a fair rental value.
First, a lease is not a section 467 rental agreement if it specifies equal amounts of rent for each month throughout the lease term
and all rent payments are due in the calendar year to which the rent relates (or the preceding or succeeding calendar year).
Factors that may affect capitalization rates are the lease term
, options in the lease, rent steps in the lease, and the beta of the tenant's stock.
It is misleading to capitalize the minimum lease payments of true lease small-ticket assets with a short lease term
that may be replaced by a new lease again and again.
One set of restatements appears to have resulted from companies amortizing leasehold improvements over a period exceeding the lease term
of the property containing the leasehold improvements.