money sectionmoney sectionTaking part in an SEC investigation for accounting fraud because of bad rent accounting can be avoided. Rent must still be included in a company's accounting even if the company isn't actually paying rent. This helps present an accurate picture of your financial situation to investors. Knowing the proper accounting treatment for rent-free periods will help you avoid SEC and investor scrutiny.
Under both U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards, operating lessees must account for free rent periods by straight-lining the rent over the non-cancellable period for which the lessee has contracted to lease the asset. This will typically result in a deferred liability that must be computed and carried on the balance sheet of the lessee.
Housing is expensive. With inflation, increased demand and a growing population, the cost for housing has continued to increase over the past 100 years. Bankrate.com recommends the total amount you spend on your housing each month be less than 28 percent of your gross monthly income to allow for other living expenses and savings. If you are considering moving into a situation that gives you free rent, you could be saving a lot of money each month.
To file for bankruptcy in the U.K., you will need to pay fees and attend court. The British government defines bankruptcy as a legal status that provides those in serious financial difficulty a way to get rid of debts they don't have the funds to pay. However, filing for bankruptcy can't taken lightly, as you could lose some, if not all, of your assets. When you're declared bankrupt in the U.K., the status lasts for one year in most cases.
When the number of rental units available exceeds the number of prospective tenants, landlords turn to a variety of strategies to fill a space. One tool, a period of free rent, succeeds on several levels. Those who offer free rent for residential or commercial space add another weapon to their arsenal in the battle for business survival.
According to The Insolvency Service, the UK government's source of bankruptcy information, 18,870 bankruptcy petitions were granted in England and Wales in the second quarter of 2009, up 15.3 percent from the same period in 2008. The process of preparing a petition in 2009 is straightforward, requiring the completion of two forms, payment of fees and appearing in court.
Often the biggest expense that people have each month is housing, or rent. No matter what your income is like, and even if you lose your job, you've still got to live someplace. This article suggests some ways in which anyone can live rent free.
