Tax Treatment of Deferred Rent Under ASC 840 and 842

Tax Treatment of Deferred Rent Under ASC 840 and 842

What is deferred rent? What are deferred taxes? Tax expense recognized under ASC 842 Initial direct costs Deferred tax examples and journal entries: Applying to lease accounting Summary Related articles You may wonder – with the deferred rent classification...
Rent Abatement and Rent-Free Period Accounting for ASC 840

Rent Abatement and Rent-Free Period Accounting for ASC 840

Calculating straight-line rent for an operating lease that includes a rent-free period is a common scenario. However, many businesses are incorrectly accounting for this type of lease. In this article, we’ll demonstrate the correct method of performing this...
6 Common Lease Accounting Errors and Their Solutions

6 Common Lease Accounting Errors and Their Solutions

To err is human. To forgive is against FASB policy. Our last blog addressed how to account for lease amendments that expand the leased premises. In today’s article, we will explain the 6 common lease accounting errors we have found after reviewing thousands of leases....