l*******e
发帖数: 309 | 1 if your straight line expense is $1000/month, but first year payment is 800/
month, in subsequent year, rent payment by 10%, it's 7 years lease. say the
contract effctice on 1/1/2008
so for the year end 12/31/2008, the deferred rent liability is (800-1000)*12
=2420, this 2420 is a short term liability or long term?
Thanks! | c*********k
发帖数: 220 | | l*******e
发帖数: 309 | 3 but if it's 7 year non cancellable lease", should you also present the long
term liability. similar to contigencies or commitment? | c*********k
发帖数: 220 | 4 My bad, I looked into my workpaper again, actually it rolls into long-term
liability instead of short-term. So should be long-term.
BTW, I don't think FTB 85-3 addresses particulary deferred rent be recorded
at long-term vs short-term. But at least it is helpful for your testing. | a*******e
发帖数: 97 | 5 I am not sure if I understand your questions correctly.
For the year ended 12/31/08, for the unpaid portion, which is (1000-800)x12=
2400, is presented as a short-term debt on the balance sheet, as the Company
has used the facility and the landlord can demand the rent payments anytime.
As it is a non-cancellable lease, the Company ought to disclose the total
expected rent expenses, by year, for the next 6 years in the footnote of "
Contigencies and Commitments". For the Company has not used the |
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