Google
English-Test.net
Find penpals and make new friends today!
 
after all others; finally; at the end; most recently
last
plain
entirely
miserably
full quiz correct answer
 
Username
Password
 Remember me? 
Search   Album   FAQ   Memberlist   Profile   Private messages   Register   Log in 

What does "synthetic lease" mean?



 
ESL Forum | English Teacher Explanations (ESL Tests)
What does "cache" mean? | meaning of the expression "long live the underworld"
listening exercises
Message
Author
What does "synthetic lease" mean? #1 (permalink) Sun Mar 25, 2007 13:36 pm   What does "synthetic lease" mean?
 

Business English Lesson, Advanced Level

ESL/EFL Test #249 "Business Buzzwords for Better or Worse", question 6

The real estate assets subject to a ......... lease do not appear on the lessee's balance sheet and no depreciation is charged against earnings for SEC reporting purposes, but its structure allows improvements to be depreciated for tax purposes, thus preserving the tax shelter aspect of owning improved real estate.

(a) simulated
(b) synthetic
(c) veritable
(d) virtual

Business English Lesson, Advanced Level

ESL/EFL Test #249 "Business Buzzwords for Better or Worse", answer 6

The real estate assets subject to a synthetic lease do not appear on the lessee's balance sheet and no depreciation is charged against earnings for SEC reporting purposes, but its structure allows improvements to be depreciated for tax purposes, thus preserving the tax shelter aspect of owning improved real estate.

Correct answer: (b) synthetic
_________________________

Hi,
How to understand the "synthetic lease" here? And how to understand this whole paragraph better? Thanks a lot!!
FangFang
I'm here quite often ;-)


Joined: 18 May 2006
Posts: 369

What does "synthetic lease" mean? #2 (permalink) Sun Mar 25, 2007 23:42 pm   What does "synthetic lease" mean?
 

.
Good morning, FangFang.

Many of these financial buzzwords were as new to me as they are to you, and I cannot pretend to understand them thoroughly myself.

Here's the Investopaedia definition:

Synthetic Lease

An operating lease that is structured in a way so that it is not recorded as a liability on the balance sheet. Instead, it is considered to be an expense on the income statement. Basically, a synthetic lease allows a company to control real estate without being required to show the real estate as an asset on the financial statements.

If there is still some phrase or structure you don't understand about the sentence, please let me know.
_________________
Native English teacher at Mister Micawber's
Mister Micawber
Language Coach


Joined: 17 Jul 2005
Posts: 13018

Do you know how to use the relative pronoun?English grammar exercises — improve your English knowledge and vocabulary skillsAre you a native speaker of English? Then you should read this!How many different ways with words do you know? Subscribe to free email English course
Display posts from previous:   
What does "cache" mean? | meaning of the expression "long live the underworld"
ESL Forum | English Teacher Explanations (ESL Tests) All times are GMT + 1 Hour
Page 1 of 1
Latest topics on English Forums
dinner on Christmas vs. dinner in ChristmasIdiom: "got fed up to the back teeth with"What does the stomach really mean in this one?What does it mean to 'extend one's house'?What's the meaning of the word "oar"?What's the difference between actually and certainly?Why is "clock didn't go off"?what is the meaning of peak?What does "leaving a message" mean?What's the difference between 'during' and 'for'?What does 'keep your wig on' mean?meaning of potluckmeaning of flush

 
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum

Get FREE English course via e-mail