2010 Intermediate Leasing - Programme
Programme
Day one
09.00 – 13.00 Malcolm Rogers: Credit Risk Assessment
In this session you will be introduced to the risk assessment of potential transactions, with particular emphasis on assessing credit and fraud risk. The credit element is case-study based, with syndicate groups working as credit committees on the consideration of potential new business. In the de-brief the key learning points will be drawn out and a framework for credit assessment introduced. The fraud element focuses on real-life "horror stories", to raise awareness of the types of attempted fraud that are commonly seen in the leasing industry.
14.00 – 17.30 George Tonks: Lease Modeling
In this session you will be introduced to how lease models are constructed. An example financing is worked through as a group: starting with the lessor's cash flow then adding in the effect of the lessor's tax and finally through to the lessor's accounting. Then the perspective is shifted to the lessee's point of view to access the attractiveness of the financing to the potential customer. The session involves practical exercises and a particular emphasis is placed upon explaining the principles used in lease modelling and putting the models into their real life contexts. Please bring a calculator!
Day two
09.00 – 12.00 John Williamson: The Impact of Leasing on Accounts
The session covers the current rules for lease accounting as they apply to lessees; the important distinctions between finance leases and operating leases and the practical and commercial issues of lease structuring. The principal focus is on International Financial Reporting Standards (“IFRS”) which has become the de facto standard for listed companies in the EU, but it also deals with the differences between IFRS and UK Generally Accepted Accounting Principles (“UK GAAP) and US Generally Accepted Accounting Principles (“US GAAP”).
The session also covers current developments in lease accounting and the direction in which the boards of the FASB and IASB are moving towards a new accounting standard in 2011 and the likely commercial impact.
13.00 – 17.00 Tim Moon: Lease taxation
In this session you will be given an overview of the taxation of both lessor and lessee with a particular focus on tax based leases. The session will include why the terms and conditions of a lease are critical in arriving at the appropriate tax treatment and the consequent impact on lease pricing. There will be a number of case studies where delegates will be asked to apply the principles covered in each of the topics.
Day three
09.00 – 17.00 David Malempre: Lease Documentation
The presentation will be in three distinct sessions, the first dealing with: (i) the methods lessors have traditionally used to acquire ownership of the leased asset; (ii) the facility or offer letter and the detailed terms of the lease itself, with particular emphasis on the purpose of a particular clause's inclusion; and (iii) the various additional means a lessor may take to secure a lessee's obligations under a lease and other ancillary documents a lessor may require in transacting a lease. The second session will comprise case studies designed to encourage interaction between the delegates in constructing secure lease transactions and the final session will be a review of the case studies.
17.00 – 17.45 John Bennett: Industry Overview