Understanding Financial Accounting Concepts in Royalty Agreements
This article delves into key concepts in financial accounting related to royalty agreements, such as minimum rent, redeemable dead rent/shortworking, recoupment of shortworking, strike and lock-out impacts, and surplus. Learn about these terms and their implications in royalty agreements.
0 views • 6 slides
Understanding Royalty, Minimum Rent, and Short Working in Leases
Royalty in leasing is a periodical payment based on output or sales made by a lessee to a lessor. Minimum rent is the guaranteed amount paid by the lessee in low-output years, and short working is the excess of minimum rent over actual royalty. Recoupment of short working allows recovering shortages
0 views • 7 slides