LEASE LIABILITY Clause Samples
The Lease Liability clause defines the tenant's financial obligations under a lease agreement, specifically regarding the payment of rent and other associated costs. It typically outlines the amounts due, the schedule for payments, and may include provisions for additional charges such as maintenance fees, utilities, or penalties for late payment. By clearly specifying these responsibilities, the clause ensures both parties understand the tenant's ongoing financial commitments, thereby reducing the risk of disputes and ensuring predictable cash flow for the landlord.
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LEASE LIABILITY. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the interest rate implicit in the lease or, if that rate cannot be readily determined, which is generally the case for leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Company: - where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received; - uses a build-up approach that starts with a risk-free interest rate; and - makes adjustments specific to the lease, e.g. term, country, currency and security. Lease payments included in the measurement of the lease liability comprise: - fixed lease payments (including in-substance fixed payments), less any lease incentives; and - variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date. The lease liability is presented as a separate line item in the statement of financial position. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. ANNUAL FINANCIAL STATEMENTS WERE APPROVED BY THE BOARD OF DIRECTORS ON 26 February 2024
LEASE LIABILITY. Make or incur additional liability for payments of rent under leases of real or personal property in excess of $500,000 in fiscal year ending December 31, 1996 and in any fiscal year thereafter.
LEASE LIABILITY. Make or incur consolidated liability for payments of rent under leases of real property in excess of $850,000 and personal property in excess of $700,000 in any one fiscal year.
LEASE LIABILITY. Make or incur liability for payments of rent under leases of real property in excess of $1,000,000 and personal property in excess of $1,000,000 in any one fiscal year.
LEASE LIABILITY. The following table sets out a maturity analysis of the lease liability: 2021 2020 Maturity analysis – contractual undiscounted cash flowsLess than one year 190,118 - One to five years 560,905 - Total undiscounted lease liabilities at September 30, 2021 751,023 - Lease liabilities included in the statement of financial position at September 30, 2021 732,469 -
LEASE LIABILITY. The Company adopted IFRS 16 from 1 January 2019 for a plot of land on which the plant is built has been leased from the Government of the Sultanate of Oman (represented by the Ministry of Housing) for a period of 25 years from 11 February 2013. The lease term can be extended by an additional 25 years at the request of the Company. Lease rental is paid at the rate of RO 15,045 per annum. At 30 September 2021, future minimum lease commitments under non-cancellable operating leases are as follows: 30 September 31 December Gross lease liability related to right-of-use assets 515 280 Addition: change in life of land lease - 246 Future finance charges on finance leases (259) (268) Present value of lease liabilities 256 258 The maturity of finance lease liabilities is as follows: Not later than 1 year 3 3 Later than 1 year 253 255 256 258 16. End of service benefits 30 September 30 September 2021RO’000s 2020 RO’000s 1 January 4 26 Provided during the period 6 10 Closing provision 10 36 31 December 2020 4 - 17. Trade and other payables 30 September 31 December 2021 RO’000s 2020 RO’000s Trade payables 2,859 1,119 Other payables 1,086 1,093 3,945 2,212 Trade and other payables include an amount of RO 1,126,774 (31 December 2020: RO 894,329), due to Muscat City Desalination Operation and Maintenance Company LLC, a related party. 18. Revenue 30 September 30 September 2021 RO’000s 2020 RO’000s Water capacity charges 7,561 7,465 Electricity charges 4,016 3,193 Water Output O&M Charges 2,254 2,157 13,831 12,815 19. Operating costs 30 September 30 September 2021 RO’000s 2020 RO’000s Operation and maintenance cost 3,278 3,138 Electricity charges 4,016 3,193 Amortisation of right-of-use asset 6 8 Depreciation 1,852 1,850 9,152 8,189 20. Administrative and general expenses 30 September 30 September 2021 RO’000s 2020 RO’000s Employee costs 216 214 Insurance 139 143 Legal and professional expenses 84 97 Depreciation 18 2 Directors’ sitting fees 21 18 Others 83 84 561 558 21. Finance costs (net) 30 September 30 September 2021 RO’000s 2020 RO’000s Interest expense on term loans and interest swaps 1,859 2,010 Interest expense on Shareholders’ loan 127 128 Amortisation of deferred finance cost 58 57 Interest income on term deposits (2) (3) Other finance cost 53 47 2,095 2,239 The Company is liable to income tax at the rate of 15% (30 September 2020: 15%). No provision for income tax has been made for the nine months period ended 30 September 2021 in view of the taxable losses for ...
LEASE LIABILITY. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the interest rate implicit in the lease or, if that rate cannot be readily determined, which is generally the case for leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Company: • where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received; • uses a build-up approach that starts with a risk-free interest rate; and • makes adjustments specific to the lease, e.g. term, country, currency and security.
LEASE LIABILITY. Make or incur liability for payments of rent under leases of real property in excess of $500,000 and personal property (capital leases) in excess of $500,000 in any one fiscal year.
4. Should there be a default under the Security and Loan Agreement, the General Security Agreement or under any note executed by Borrower in favor of Bank, or under any other document executed by Borrower in favor of Bank, all obligations, loans and liabilities of Borrower to Bank, due or to become due, whether now existing or hereafter arising, shall at the option of the Bank, become immediately due and payable without notice or demand, and Bank shall thereupon have the right to exercise all of its default rights and remedies.
5. Bank will advance up to 75% of Eligible Accounts up to maximum of $2,000,000 provided, however, that Bank, in its sole and absolute discretion may adjust the foregoing advance rate to a lower amount deemed prudent by Bank contingent upon "dilution" exceeding 5% on an annual basis as determined by Bank audit. For purposes of this Addendum, "dilution" shall be defined as non-cash credits applied to accounts receivable. Eligible Accounts shall only include such accounts as Bank in its sole discretion shall determine are eligible from time to time. In addition to the provisions in the Security and Loan Agreement, "Eligible Accounts" shall also NOT include any of the following:
LEASE LIABILITY. Seller's liabilities and obligations pursuant to the lease of the Property (the "Lease").
LEASE LIABILITY. This refers to the PV of the lease payments discounted at the discount rate, the rate implicit in the lease when the rate is determinable; otherwise, the rate to be used should be the incremental borrowing rate. Right-of-use asset. This refers to the amount of lease liability plus lease payments made prior to the commencement of the lease plus initial direct cost minus lease ▇▇▇▇▇▇▇▇▇▇.▇▇▇ may alsosee Non-compete agreements Mississippi Standard Lease Agreement Example Size: Download New Mexico Residential Lease Agreement Example Size: Download Ohio Standard Lease Residential Agreement Example Size: Download Residential Tenancies Rental Agreement Example Size: Download The following should be recognized in the records of the lessee over the term of the lease: 1. Amortization of the right-of- use asset 2. Amortization of the interest of the lease liability 3. Variable lease payments 4. Impairment of the right-of-use asset The accounting for a finance lease involves the following steps: 1. Recognition of the finance lease. If a lease meets criteria presented above needed to qualify for accounting as a finance lease, then you must record the present value of all lease payments as the cost of the leased asset.