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Deferred Rent

Building management forgot to charge us for parking spaces for the past 5 years - they just discovered it, so they started charging us going forward instead of making us payback what they missed. We already have a deferred rent schedule set up for our rent expense, do I need to add this extra expense to our schedule going forward or just expense it each month? Not sure how to handle this! Any help is appreciated. Thanks.


Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

You should apply the kind of determination (and computation) why you deferred rent in the first place. I am assuming you deferred rent because you got some month/s rent free? If I was a stickler for GAAP, I would add the parking space deferral amounts to the rent schedule/worksheet.

Having that, and IMO, parking space/s rent is very minimal and the deferred portion (if any) would be immaterial (in relation to the extra steps/processing each month). I would just expense it as they are billed/paid.


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