Reinvestment of the working capital realised into the company’s operations
From this act, Nathan was able to raise $20 million from the sale and leaseback of its portfolio based on the past financial statements of the period. These realised profits can be reinvested back into the company’s operations and diversify its beer brands to other capital markets .
As per the case, Lion Nathan’s action of reviewing the ownership that it possesses in its 41 pubs operating in Melbourne and Geelong creates a potential opportunity for the sale and leaseback options for its hotel assets. With a continued expectation that contractual agreements for the long-term supply of beer to the market, this creates a benefit of raising the share price as well as the interest.
Possibility of avoiding potential risks associated with owning the brewer assets
Since Lion Nathan is committed to retaining and expanding ownership and control of the portfolio, shareholders wealth will first get maximised. Further, diversification of Nathan's portfolio in hotels in the brewer such as The Imperial and Pugg Mahone's, and Albert Park Hotel will enable Lion to avoid risks associated with owners all these properties.
According to the newspaper article, the related lease is a capital lease. First and foremost, the article states that one key requirement for the contract is long-term contracts for the supply arrangements which is an attribute for a capital lease (Stice & Stice, 2013). The contract only becomes to existence after expression of interest from the interested pubs in Melbourne and Geelong.
Secondly, Lion Nathan can capitalise on its rental assets in hotels whereby all the obligations are seen to be recordable as assets for the firm. The future lease payments, for example, the purchase of spree provided odds of not owing to the hotels for the brewer needed an exception in operations.
Further, Lion Nathan’s focus to switch its investments across all brands, therefore a capital lease. Lion Nathan's statement that it was not planning to dispose of its venues but rather remained committed to the retention of ownership and control of the portfolio shows that this was a capital lease (Gettler, 2004).
Gettler, L. (2004). Lion Nathan rethinks bricks and Porter strategy. Financial Accounting in the News, 3.
Stice, E., & Stice, J. (2013). Intermediate Accounting. Boston: Cengage Learning.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Advanced Accounting: Sale And Leaseback Transactions. Retrieved from https://myassignmenthelp.com/free-samples/advanced-accounting-sale-and-leaseback-transactions.
"Advanced Accounting: Sale And Leaseback Transactions." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/advanced-accounting-sale-and-leaseback-transactions.
My Assignment Help (2018) Advanced Accounting: Sale And Leaseback Transactions [Online]. Available from: https://myassignmenthelp.com/free-samples/advanced-accounting-sale-and-leaseback-transactions
[Accessed 31 May 2020].
My Assignment Help. 'Advanced Accounting: Sale And Leaseback Transactions' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/advanced-accounting-sale-and-leaseback-transactions> accessed 31 May 2020.
My Assignment Help. Advanced Accounting: Sale And Leaseback Transactions [Internet]. My Assignment Help. 2018 [cited 31 May 2020]. Available from: https://myassignmenthelp.com/free-samples/advanced-accounting-sale-and-leaseback-transactions.
MyAssignmenthelp.com has appointed best assignment experts who are wizards of words. Our writers know every trick of crafting high quality write-ups within a short period. With years of experiences, we have become one of the most prolific assignment help services in the USA. We deliver custom-made help to students with writing different types of assignments. We guarantee total need-based and timely service, and this is why increasing numbers of students prefer to buy assignment online.
Answer: Project Activities Activity List: WBS Task Name Duration Start Finish 0 Essendon & Buckley Street level crossing removal 985 days Wed 4/25/18 Tue 2/1/22 1 Initiation phase of the project 73 days Wed 4/25/18 Fri 8/3/18 1.1 Identifying objectives of the project 15 days Wed 4/25/18 Tue 5/15/18 1.2 Undertak...Read More
Answer: Introduction National Australia Bank is associated with more than 30,000 people serving almost 9,000,000 customers at more than 900 locations in New Zealand and Australia (Nab.com.au 2018). The company believes in innovations and work with the workforce by developing the infrastructure for the betterment of the customer services. Thehuman resource management of the company pays attention to the different HRM activities, su...Read More
Answer: Company Background Nexba beverages majorly deal with sugar free beverages Are targeted towards the health conscious customers It is an Australian company that was founded by Drew an Troy In the year 2015, Nexba had won a prestigious Telstra Australian Business Award (Nexba Beverages) The company has won Product of the year prize in 2017 The mission of the company is however to fight against sugar and ring at...Read More
Answers: 1. (a): Firstly, let covert hexadecimal Number (6A) to equivalent decimal number. =(6A) 16 &nb...Read More
Answer Introduction In Oman, Companies are not allowed to operate if they do not have a health and safety program, the objectives of this program is to ensure that workers get protected during their time at the workplace. Although the regulations contained in the health and Safety program may not be applicable to every work place, there should be a safety and risk assessment conducted by every company to determine hazards that are present in ...Read More
Just share Requriment and get customize Solution.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
I would recommend it to my friends, easy to contact. always on time and offering good prices
The work was phenomenally done, and it was even praised. I highly recommend this site, the service and help, altogether, I would not have passed any classes if it weren\'t for you guys and gals
The assignment was very well written, and the teacher was very pleased and praised the work.
For once, what I asked for was delivered without any hassle and going back and forth. Whichever writer did the assignment, thank you so much for revamping my assignment based on the feedback that was provided.