According to the New York Times, the Biden administration suspended oil drilling leases in the Arctic National Wildlife Refuge, unspooling a signature achievement of the Trump presidency and delivering on a promise by President Biden to protect the fragile Alaskan tundra from fossil fuel extraction. Questions: How much oil is estimated to lie in this… Read more »
Posts Tagged: Leases
FASB Wraps Up 2020 with FASB Roundtable Discussions
According to Accounting Today, the Financial Standards Accounting Board’s recent roundtable discussions centered on new guidance about lease implementation for public and nonpublic organizations, and what we can expect for non-public implementation next year. Questions: Why didn’t participants at the Sep. 2020 FASB Roundtable want sweeping changes to lease guidance? According to the article, why… Read more »
What a Sad Day: Say It Ain’t So!
According to the Dayton Daily News, the parent company of Chuck E. Cheese has filed for Chapter 11 reorganization bankruptcy “in order to overcome the financial strain resulting from prolonged COVID-19 related venue closures” and to restore the kids-entertainment-and-pizza chain to a position of long-term success, according to a release from CEC Entertainment, Inc. All across… Read more »
I Smell a Bailout – Maybe for some?
According to Bloomberg, many airlines have been driven into a technical bankruptcy or they have substantially breached debt covenants already. Questions: Explain why the debt covenants are characteristic of the airline industry. 2. The article talks about steps that have been already taken by some airlines as they are depleted of cash. What are some… Read more »
Another IPO in Albertson’s future?
After failing multiple times to go public, Albertsons’ grocery chain is launching an IPO valued at around $19 billion. Questions: When did Albertsons previously try to go public? Who is Albertsons’ private equity investor and how long have they been invested in Albertsons? How much is Albertsons’ net debt, excluding leases? Why didn’t Albertsons’ merger… Read more »
Shopping Comes at A Price
According to Chico Harlan, five years after the Great Recession, the most striking change in the world of low-income commerce has been the proliferation of rent-to-own stores. Questions: 1. How do rent to own stores avoid state usury laws and other regulations aimed at excessive interest payments? 2. What percentage of items are returned or… Read more »
Chapter 11 for Quiznos
Quiznos, the Denver-based sandwich chain, is preparing to file for bankruptcy in the next few weeks, due to debt and declining sales. Questions: 1. This is not the first time that Quiznos has negotiated with creditors. Explain its out-of-court restructuring deal that occurred two years ago. 2. Assuming that the past debt load was similar… Read more »
The Airline Industry in Africa is Expected to Boom in the Coming Year(s)
Africa is a continent with the 2nd largest population but only 3% of the global air traffic. The region’s economies are growing robustly and by all indications will continue to do so in the coming years. With a rise in GDP, a corresponding rise in demand for aviation services is to be expected. Questions: 1…. Read more »
What’s the Diagnosis – Accounting Fatigue Syndrome (AFS)?
At a recent conference in Orlando, financial executives discussed one of the top reasons for employee fatigue – a continuous stream of regulatory and accounting standard-setting guidance that has been issued in recent years and the promise of more to come over the foreseeable future. Questions: 1. Although the article provides little detail, what accounting… Read more »
What Will the Future Bring for Lease Accounting?
CEOs and CFOs are cautiously eyeing the limitations that convergence of FASB and IFRS standards may bring to lease accounting. Predictions are that a new global lease standard, anticipated in 2011, will require many traditionally classified operating leases into the capital lease status. QUESTIONS: What are the current FASB criteria for classifying leases as either… Read more »