Regardless of industry or trade, there’s a strong chance that rent makes up a significant portion of your annual expenses and long-term liabilities. Do you have a tangible property lease for more than a year, with total expected payments to be in excess of $250,000? Are you accounting for your long-term lease liabilities correctly?
Accounting for long-term property leases can be tricky. It is important to understand when lessees and lessors should follow the lease agreement and when to account for what is known as “rent leveling.” Without proper attention to long-term leases, you could be reporting lease accruals incorrectly. Most …read more
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