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To: Glenn D. Rudolph who wrote (43798)3/4/1999 11:19:00 AM
From: Slumdog  Read Replies (1) | Respond to of 164684
 
>>>>The building that is leased is shown on the asset side of the balance sheet, and is treated
like any other fixed asset.<<

This is just GAAP treatment called "capitalizing." It refers to the recording of an expenditure as an asset rather than an expense. It is done to spread the expense over more than one accounting period.
Usually done with leases and interest.

HJ:
>>Yeah right. Please tell Ms Covey that, before they change auditors.<<

I'm sure Ms. Covey is well aware of this type of accounting practice.



To: Glenn D. Rudolph who wrote (43798)3/4/1999 12:30:00 PM
From: H James Morris  Respond to of 164684
 
>> My lease is not debt and the mall is not an asset. My rent is posted in the expense column<<
Glenn, change auditors. It's the only "Thing" you should do.