Real Property / Costs / Cost Administrator

Straight-Line Reporting: Overview

To address the globalization of business and investment, standards groups are working to make accounting standards fully compatible with one another: The Financial Accounting Standards Board (FASB) sets the standards for financial reporting in the United States of America. FASB and the International Accounting Standards Board (IASB) are working together to improve both US Generally Accepted Accounting Principles (US GAAP), and International Financial Reporting Standards (IFRS).

As part of this effort, the United States Financial Accounting Standards Board statement 13 (FASB 13) requires operating expense leases to be capitalized (as if a capital lease) and included in financial statement reporting.

For current FASB-13 compliance, Archibus provides the Straight-Line Rent report that calculates and compares straight-line rent adjustments with actual rent differential analysis. See Straight-Line Rent Report.

Straight-line rent reporting accounts for stepped rents, leasehold improvements, up-front payments, and other scenarios, as described in the following scenarios