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This excerpt taken from the LUX 20-F filed Jun 28, 2006. Determining the Amortization Period for Leasehold
Improvements (“EITF 05-6”), which requires that leasehold
improvements acquired in a business combination or purchased significantly
after, and not contemplated at the inception of the lease, be amortized over
the lesser of the useful life of the asset or a term that includes lease
renewals that are reasonably assured. This consensus is applicable for
leasehold improvements acquired or purchased beginning after June 29, 2005
and will be followed in future periods if and when necessary.
In October 2005, the FASB issued FASB Staff Position No. 13-1, Accounting for Rental Costs Incurred During a Construction Period (“FSP 13-1”), which concluded that rental costs associated with ground and building operating leases that are incurred during the construction period should be recognized as rental expense in such period. This guidance is effective for reporting periods beginning after December 15, 2005. The adoption of FSP 13-1 is not expected to have a material effect on the Company’s consolidated financial statements and will be followed in future periods if and when necessary. In February 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments—an amendment |
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