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English language (monolingual) [PRO] Bus/Financial - Real Estate / Russian terminology
English term or phrase:inseparable improvements
Appearing in this form: "... transfer of inseparable improvements in leased fixed assets"
The only references I have found relate to RU sources, and I think this may be a term specific in RU law.
It seems to me it relates to 'fixtures' — modifications or 'improvements' made to leased premises (in this case, a very large RU company) that devolve to the landlord if the lease ends.
It appears in a set of financial results (this is just a heading), and there is no further reference to this term or any further information given anywhere in the whole report.
I don't imagine the sums invovled would necessarily be very huge, but presumably the accounts will allow for the provision to cover this and/or 'depreciation' in connection with this.
I feel sure the same concept must exist here in the West, and I don't mind betting that 'improvements' would be part of it; but I'm just stumped for how we would render the 'inseparable' part, apart from the underlying notion of 'fixtures'.
As an aside, would be also refer to this as 'fixed assets', or would 'immovables' be better here?
I'm sorry, I can't! This is just one fleeting mention with no further context in a financial report. As such, it necessarily has to be as all-encompassing as possible, and I think it includes all those things; certainly 'buildings' and 'land' are likely, but I think also plant and vehicles.
Tony, could you clear up one important point please? What is the asset concerned? Land, buildings, plant & machinery? I think it matters. Best regards, Chris
How do you know what term Tony (the Asker) needs? Ask him, not me! (I believe he need the UK equivalent Again, it is not only my time, it is others as well! I'm done! "No further comments". Regards.
by unfounded assertions that I can't leave without response, in case someone takes them seriously.
You really expect me to let it pass when you are affirming that legal documents filled in US are not using a term the definition of which you can find on a reference site used by the legal profession in USA?
Frankly, I find your posting a total waste of my time now. You must be mixing me up with someone else as I said nothing about "run-of-mill conspiracy theories / Flat Earthers site according to you?" (whatever the h* that means?). The last issue I will address is if you read the entry properly, Tony asked for "the relevant accounting term used in financial statements" (which michael 10705 explained to you a thousand times). He also said: "Russia adopted IFRS and it became part of Russian law as well around 2010-11." SEC is American! Regards.
"the concept of "inseparable improvements" (which you insist is correct. It is not). It is not a term used under Anglo-Saxon/or American law"
?????
Inseparable Improvements ' shall mean results of the Lessee's conduction of Works in the Premises that cannot be parted from the Building or the Premises without causing any damage to the Building and/or the Premises;
A source about as reliable as your run-of-mill conspiracy theories / Flat Earthers site according to you? Let's see:
"Welcome to the LawInsider research database. The over 1,268,560 documents contained on this website are SEC contract filings that are catalogued and indexed daily.
This site is leveraged by over 150,000 in-house counsel, attorneys, contract managers and entrepreneurs who utilize our search functionality to identify model contracts and clauses for use in contract drafting.
LawInsider was co-founded by Preston Clark, an attorney and software executive in San Francisco, ... "
The last comment is I don't think there are many of us, least of all you (and not because you may live in the UK), who is qualified enough to say for a fact that "leaseholds" do not exist in Russia. Thank you and punto final! ....................
I've sat back and read all your entries, and frankly as a native English speaker, the concept of "inseparable improvements" (which you insist is correct. It is not). It is not a term used under Anglo-Saxon/or American law, and further Tony asked for, and I am assuming he needs the comparable accounting term, not a concept describing what he has outlined. "Leasehold improvements" is a perfectly valid term and all your arguments that "leasehold" does not exist in Russia is not valid, it not accurate. See Michael10705's comments addressed to you in earlier entries. Germaine also explained (mostly for your benefit): Comme il s’agit de résultats financiers et qu’on parle de "depreciation" (amortissement), je suppose que le texte parle du traitement comptable/fiscal des immobilisations : fixed assets, capital investments, capital assets, tangible capital assets (immobilisations corporelles, actifs fixes, actifs immobilisés) - ce qui s’appelle aussi "property, plant and equipment". In my opinion, the term Tony needs is somewhere along the lines of what Germaine and Michael have stated. I don't think either that the issue is to find a comparable Russian accounting term.
" ....what this category of expense would be called in accounting in the West."
it would be called "inseparable improvements", as it was rightly translated.
Also "inseparable improvements" is NOT some category invented by a translator out of thin air:
Inseparable Improvements ' shall mean results of the Lessee's conduction of Works in the Premises that cannot be parted from the Building or the Premises without causing any damage to the Building and/or the Premises;
Notice also that this definition from a US legal website refers to a "lessee" NOT to a "leaseholder".
Or to put it in the shortest form possible: here is a case of what is called everywhere in the world "renting" - in this ST a commercial property, which involves a "Lessee" - as opposed to "owning" a property in leasehold which involves a "leaseholder".
michael10705 (X)
00:03 Apr 14, 2019
IMO:
From the asker's comments here in discussion entries:
"We are not looking here for a definitive staement of the law, as in the translated code, but rather, what this category of expense would be called in accounting in the West."
Leasehold improvements are really, by nature, improvements to any leased property that are not easily separable without causing damage or loss of value - very few things are truly "inseparable," so that in itself is already a bit misleading as a term.
It is a pretty common accounting term, yes, also beyond the Anglo-Saxon or common law world. You'll see it mentioned in IFRS financial statements.
Russia adopted IFRS and it became part of Russian law as well around 2010-11. In fact, it is also required in Russia for certain types of companies - companies listed on the stock exchange, just as one example.
You are disagreeing with what I haven't said, and are in fact saying exactly what I also said. I imagined that my answer is clear enough:
"... as for the translation for неотделимые улучшения, no need to try to change anything - aucun besoin d'aller chercher midi à quatorze heures - "inseparable improvements" is a perfectly good one, as confirmed by: ..."
so yes, I agree that there is absolutely nothing wrong with using "inseparable improvements" practically anywhere in the world.
The point of this question for Tony to have the exact meaning of the term, and possibly also to have a reassurance that it's the best translation for the corresponding concept in Russian property laws, to get an explanation NOT some supposedly "better translation" just for the sake of it.
What I keep strongly objecting to is any mention of "leasehold" in connection to a property located in any country that is not part of the Anglo-Saxon legal system. It makes about as much sense as elaborating about "feudal rights" in a republic! Or calling the Pope "an ayatollah" or ...
You are disagreeing with what I haven't said, and are in fact saying exactly what I also said. I imagined that my answer is clear enough:
"... as for the translation for неотделимые улучшения, no need to try to change anything - aucun besoin d'aller chercher midi à quatorze heures - "inseparable improvements" is a perfectly good one, as confirmed by: ..."
so yes, I agree that there is absolutely nothing wrong with using "inseparable improvements" practically anywhere in the world.
The point of this question for Tony to have the exact meaning of the term, and possibly also to have a reassurance that it's the best translation for the corresponding concept in Russian property laws, to get an explanation NOT some supposedly "better translation" just for the sake of it.
What I keep strongly objecting to is any mention of "leasehold" in connection to a property located in any country that is not part of the Anglo-Saxon legal system.
Comme il s’agit de résultats financiers et qu’on parle de "depreciation" (amortissement), je suppose que le texte parle du traitement comptable/fiscal des immobilisations : fixed assets, capital investments, capital assets, tangible capital assets (immobilisations corporelles, actifs fixes, actifs immobilisés) - ce qui s’appelle aussi "property, plant and equipment".
Je n’utiliserais certainement pas "immovables" dans ce contexte puisque le terme désigne essentiellement l’immobilier (real property), ce qui exclut l’aspect équipements - dans le sens large du terme (ex.: procédé industriel).
Quant à rendre le sens de "inseparable", pour ma part, je m’en tiendrais à "fixes", mais j’ai vu des "améliorations indissociables" dans des textes de source française.
Vous n’avez pas l’air de comprendre que "inseparable improvements" n’est pas un terme "russe", mais une expression utilisée en anglais un peu partout, tant aux États-Unis qu’en Europe. Il n’y a rien de sorcier là-dedans, rien qui oblige à couper les cheveux en quatre! Prenez ce texte:
La notion de "inseparable improvement" ne diffère pas de celle qui vous est expliquée ici. Ce qui est logique d’ailleurs, parce que tant qu’à parler de comptabilité et de fiscalité russe en anglais, l’auteur est bien avisé de choisir une expression usuelle qui soit représentative de ce qu’il parle, non?
https://thelawdictionary.org/leasehold/ Especially if we are not discussing the peculiarities of ownership rights, especially if it is a part of a fixed expression
C’est ce qu’on appelle ici des "améliorations fixes", tout simplement. Je ne vois pas le besoin de couper les cheveux en quatre: ce n’est pas tant un concept juridique qu’un concept factuel: ou vous pouvez partir avec l’amélioration (ex.: remplacement des luminaires), ou vous ne pouvez pas sans démolir pour remettre dans l’état original (ex.: la société qui a aménagé ses bureaux sur un étage vierge n’abat pas les murs en déménageant). Par ailleurs, d’un point de vue comptable/fiscal, les "améliorations" se distinguent des "réparations" et ce ne sont pas tous les baux qui prévoient un "remboursement" au locataire, loin de là! Le commercial n’a pas grand chose à voir avec le résidentiel.
The term 'leasehold improvements' fits the bill. The tenant may well receive income in the end, when the lease expires and the improvements have to go off its balance-sheet - it transfers them to the landlord (not back to, because the landlord had never owned them) for a consideration, if it was so agreed in the lease contract or if the improvements were approved by the landlord.
michael10705 (X)
23:09 Apr 10, 2019
As to the last part of your question, leasehold improvements are generally accounted for under the Property, Plant and Equipment = Fixed Assets category. Also, IMO, I would venture that it has nothing particularly to do with Russian laws as such, but that the writer may not have been aware of the Western accounting lingo for this type of fixed asset. Also, please see this ref - leasehold improvements is specifically referred to, but there is no entry under "immovables" or "inseparable."...https://books.google.com/books?id=xfsugBgwaJMC&printsec=fron...
What is needed is someone who knows well the property laws in Russia.
It might be worth asking for an explanation in the EN-RU or FR-RU pair, as there must few Russian translators that could explain the distinctive / key elements of this concept.
Thank you very miuch indeed for finding that translted version of the RU code, which exactly confirms what Taña's ref. says — and I'm sure is probably the origin of all the RU examples to be found on the 'Net. I remain sceptical, though, as to the applicability of this term outside RU, since I have not found a single ref. that originates from outside RU. We are not looking here for a definitive staement of the law, as in the translated code, but rather, what this category of expense would be called in accounting in the West.
Rusia throughout, and as I said, it's clear that this is a concept under Russian law; I don't have a source text in RU, but it has been written in EN by RU natives. The transfer can only presumably mean the transfer of the improvements back to the landlord at lease end... but here, my guess is as good as yours; in particular, I don't know why they are talking about 'income and expenditure' for this transfer: presumably, it can only be 'expenditure', unless there is a 'gain' in terms of its costing less than the provision allowed. I really have no further information relating to this term. For confidentiality reasons, I can't iudentify the company, but suffice it to say it is a very large industrial concern. I am totally convinced there is a generally-applicable term, as confirmed by Taña's reference, also RU, which seems to be describing exactly the notion of 'fixtures and fittings'.
Tony, I'll give the link and in case it won't work, this is how you can find it. Go to Google Books and put Russian Civil Code Osakwe in the search box. After you open the Russian Civil Code make a search in the book for Article 623 - Article 623, part/paragraph 2 is what you need I think. https://books.google.ru/books?id=JcanG8FDWdcC&pg=PA28&dq=rus...
Where is this property located? ONLY the national laws would apply IOW there is no point looking for some general-purpose-everywhere-the-same definition of "inseparable improvements" - the ONLY relevant meaning is the one given by the local law.
Whose financial statement is it? Of the Russian company (the tenant?) or of the owner of the property?
Which way this "transfer" is going, and at what time? Like, at the end of the lease?
Is the ST the EN original, or a translation from RU?
Not sure if this will shed additional light, but here goes: https://www.dlapiperrealworld.com/export/sites/real-world/gu... Improvements to the leased property are divided into separable and inseparable improvements. Separable improvements (for example, installing furniture) can be performed by the tenant without the consent of the landlord and remain in the ownership of the tenant. **Inseparable improvements (for example, repair of the building) can be performed only with the landlord’s consent and, after the termination of the lease, the tenant is entitled to compensation for such improvements, unless otherwise provided for in the lease.**
Automatic update in 00:
Answers
17 mins confidence: peer agreement (net): -2
necessary improvements expenses
Explanation: It means, for me, that those expenses on ¨necessary improvements of the property¨ are included in the leasing so they become accounted on the ledger as a part of fixed assets.
Asker: Thanks for your contribution, but there is nothing in the source term to suggest that these improvements might be 'necessary', which amounts to over-interpretation. The only distinction is between 'inseparable' and 'separable', which in EN is usually 'fixtures and fittings' in other contexts.
1 hr confidence: peer agreement (net): +3
leasehold improvements
Explanation: In this case (column header, financial statements), I would perhaps just go with "leasehold improvements."
-------------------------------------------------- Note added at 2 hrs (2019-04-10 21:15:48 GMT) --------------------------------------------------
...the term one usually uses in accounting for this...things like building in wall partitions, new electrical wiring, etc.
-------------------------------------------------- Note added at 2 hrs (2019-04-10 21:35:45 GMT) --------------------------------------------------
michael10705 (X) Local time: 22:45 Native speaker of: English PRO pts in category: 4
Grading comment
Selected automatically based on peer agreement.
Notes to answerer
Asker: Thank you for your strongly-argued contribution, but I would not have chosen this answer: while these may be improvements made to 'leased assets', there is no element of 'leasehold' involved; 'lessee's improvements' would be more strictly correct in this context.
peer agreement (net): -2