FASB and IASB are in the home stretch of redeliberating a new accounting standard for how to account for all leases to bring them on the balance sheet and banish the bright-line distinction between operating leases and capital leases. The boards have long wrestled, however, with how to develop a straightforward method to account for leases like today's operating leases, which tend to represent short-term arrangements for limited access to a given asset bearing little resemblance to the purchase of the asset. They are trying to put the finishing touches on a revised proposal so that it can be issued for a fresh round of comments and wrapped up by 2013.
Equipment Lease Financing News. Building sound business relationships by delivering on our commitments. Mazumacapital.com (801) 816 0800
Monday, May 21, 2012
Mazuma Capital Partners: Lease Accounting Standards Talks Still Underway
Mazuma Capital Partners: Lease Accounting Standards Talks Still Underway:
Hitting an impasse over how to account for short-term, rental-like leases, the Financial Accounting Standards Board and the International Accounting Standards Board will regroup next week to discuss their findings after additional research on an eleventh-hour proposal.
FASB and IASB are in the home stretch of redeliberating a new accounting standard for how to account for all leases to bring them on the balance sheet and banish the bright-line distinction between operating leases and capital leases. The boards have long wrestled, however, with how to develop a straightforward method to account for leases like today's operating leases, which tend to represent short-term arrangements for limited access to a given asset bearing little resemblance to the purchase of the asset. They are trying to put the finishing touches on a revised proposal so that it can be issued for a fresh round of comments and wrapped up by 2013.
FASB and IASB are in the home stretch of redeliberating a new accounting standard for how to account for all leases to bring them on the balance sheet and banish the bright-line distinction between operating leases and capital leases. The boards have long wrestled, however, with how to develop a straightforward method to account for leases like today's operating leases, which tend to represent short-term arrangements for limited access to a given asset bearing little resemblance to the purchase of the asset. They are trying to put the finishing touches on a revised proposal so that it can be issued for a fresh round of comments and wrapped up by 2013.
Monday, April 16, 2012
Wednesday, April 11, 2012
Monday, March 12, 2012
Monday, March 5, 2012
Section 179 for 2012
Section 179 limits for the year 2012 were increased by the 'Jobs Act of 2010' which allows businesses to write-off up to $139,000 of qualified capital expenditures subject to a dollar-for-dollar phase-out once these expenditures exceed $560,000 in the 2012 tax year.
Bonus Depreciation was also increased to 50% by the 'Tax Relief Act of 2010' which allows larger businesses that exceed the $560,000 cap to write-off 50% of qualified assets using first year Bonus Depreciation. Also, small businesses that are not profitable in 2012 can use 50% Bonus Depreciation (on new equipment only) and carry-forward the loss to future profitable years.
This should mean a substantial boost to your bottom line this year. But, to get the deduction for tax year 2012, you have to act this year, as once the clock strikes midnight on December 31, 2012; Section 179 can't increase your 2012 profits anymore.
Wednesday, February 29, 2012
Equipment Leasing is Gaining Popularity
U.S. companies are investing more in equipment than they were a year ago. The Equipment Leasing and Finance Association said its monthly index of business volume rose 21% to $5.1 billion last month compared with January 2011. The rise reflects moves by companies to replace computers, vehicles, construction equipment and other assets as the economy improves. It also reflects thawing credit markets, the association said. Source: WSJ.com, ELFAonline.org
Friday, February 17, 2012
Mazuma Capital Funds $12.5m Transaction For Thermal Coal Producer
DRAPER, UTAH, February 17, 2012 – Mazuma Capital, a leading national direct lender, today announced that it has funded over $12.5 million dollars for a U.S. high quality thermal coal producer.
The coal producer sought several funding sources that had expertise in funding newer companies. They had many challenges present in the transaction from the type of equipment, to the documentation aspect. There were also several factors that affected the credit due to recent mergers. Due to these challenges the financing was denied through several well-known banks and vendors. Mazuma Capital was ultimately the right financing source to help structure and fund the transaction.
A favorable structure was an important objective in order to provide cash flow, the appropriate tax, and accounting factors to meet the financial goals of the company. The structure also needed to provide the ability to expense the payments over time. Mazuma Capital was able to secure an approval in a timely fashion while meeting the needs of the company; from the terms to the unique structure.
“This is a newer company that is still in the midst of a huge growth phase. Therefore, this transaction produced several challenges in finding a suitable financing structure to meet the goals of the company. The lack of history, recent buyouts, and mergers made this a more difficult credit. Our team worked hard to develop a perfect balance with the right structure, and suitable terms for the company,” said Jared Belnap, President and CEO of Mazuma Capital.
About Mazuma: Mazuma Capital is committed to our client’s success. Our unique capabilities and innovative product offerings provide solutions accelerating financial growth. Servicing both rising companies and established businesses, Mazuma continues to secure its position as the middle-market industry leader. We build long-term relationships by delivering on our commitments. Mazuma co-authored the Utah Best Practices Alliance. Mazuma Capital subscribes to the ELFA Code of Fair Business Practices and NAELB code of ethics.
Media Contact:
Julie Fuchs
801-816-0800 Ext. X291
jfuchs@mazumacapital.com
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