Lucernex expert Jim Duport provides GAAP and SOX 101 for commercial real estate professionals. Learn how GAAP and SOX impact lease costs and how to properly analyze a commercial lease to account properly for GAAP.
…L it is treated as a net rent credit spread over the balance of the term. In the event there is another inducement besides a construction allowance at a later date in the term, that cost is again treated as a credit to net rent over the remaining balance of the term.
LX LseMod Corporate includes the OPTION to treat all or part of these requirements using, or not using GAAP.
Are Subleases impacted by SOX?
GAAP also dictates how the costs associated with subleases need to be calculated to be in compliance with SOX. Start by determining the net present value of all rental costs including write-offs of depreciation and subleasing costs, offset by the sublease income, the NPV (net present value) write-off. The Income Statement (Profit…
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What is GAAP rent and how does it impact SOX?
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