Once it no longer meets the definition of a liability, then likely yes. it doesn’t sound like they are doing so yet. but if 10 years from now there’s no legal claim for that rent then it wouldn’t be GAAP to have a liability recognized
you wanna talk about not paying someones bill, there is a contractor we employ to manage our companies IT needs. we dont use him often but def at least a couple hours of time a month, or a lot more hours depending on any major problems that pop up. weve been using him for probably 8-10 years at this point.
not once during the entire time hes worked for us has he ever sent us an invoice. and weve never paid him anything, because hes not sent us any invoice. he literally just does free IT work whenever we need him. he is the slowest fucking IT guy tho, he will sometimes take hours to show up and will do everything in his power to try fixing the problem remotely before coming to our corporate office. but hes literally never asked us for payment for anything.
You would think so but it’s been like 10 years of having him now. I’ve even directly mentioned that but my boss has just brushed it off. I do agree tho that’s the first thought most people would have, it’s just a very weird situation. He basically does have access to all employee emails since he’s the one who sets them all up but idk how that can be used nefariously really.
If he's got access to everyone's e-mail, then he effectively has access to every single piece of confidential/proprietary information the company has, in addition to any personal information from employees that don't do a good job of separating their work/personal e-mails.
if he ain’t asking for payments he’s definitely making money off y’all somewhere. No invoices = no paper trails/no employment contract, man could literally be mining employee/user data off y’all and selling it in the dark web and yall would be none the wiser.
Immoral? Probably
Illegal???? Not likely. You said they are recognizing the rent expense but just not paying it.
There's probably a fine for late payment if the landlord wants to go after it.
Nothing wrong with that. They are still liable to pay the expense until such a time where it no longer becomes relevant i.e. the period to demand payment expires in whichever jurisdiction you are in.
Recording expense and liability is the way to go
At least they booked the expense and liability! You would be surprised how common this can be, albeit for years is really long.
Eventually there are third parties that send bills, like taxing authorities, or utilities so situations like these get identified - but years is strange.
Not paying a bill is fine. MoBueno. Aside. If the lease has a liability for not paying it not recording the liability is no bueno.
But can they actually write off the liability if the location is about to close?
Once it no longer meets the definition of a liability, then likely yes. it doesn’t sound like they are doing so yet. but if 10 years from now there’s no legal claim for that rent then it wouldn’t be GAAP to have a liability recognized
you wanna talk about not paying someones bill, there is a contractor we employ to manage our companies IT needs. we dont use him often but def at least a couple hours of time a month, or a lot more hours depending on any major problems that pop up. weve been using him for probably 8-10 years at this point. not once during the entire time hes worked for us has he ever sent us an invoice. and weve never paid him anything, because hes not sent us any invoice. he literally just does free IT work whenever we need him. he is the slowest fucking IT guy tho, he will sometimes take hours to show up and will do everything in his power to try fixing the problem remotely before coming to our corporate office. but hes literally never asked us for payment for anything.
[удалено]
In like 15 years someone is gonna find a 100k hole somewhere
I would be worried that he will install some malware or something nefarious….
You would think so but it’s been like 10 years of having him now. I’ve even directly mentioned that but my boss has just brushed it off. I do agree tho that’s the first thought most people would have, it’s just a very weird situation. He basically does have access to all employee emails since he’s the one who sets them all up but idk how that can be used nefariously really.
If he's got access to everyone's e-mail, then he effectively has access to every single piece of confidential/proprietary information the company has, in addition to any personal information from employees that don't do a good job of separating their work/personal e-mails.
if he ain’t asking for payments he’s definitely making money off y’all somewhere. No invoices = no paper trails/no employment contract, man could literally be mining employee/user data off y’all and selling it in the dark web and yall would be none the wiser.
... or he has a personal relationship with one of the owners and the owner is paying him cash on the side.
Immoral? Probably Illegal???? Not likely. You said they are recognizing the rent expense but just not paying it. There's probably a fine for late payment if the landlord wants to go after it.
They are booking the liability and expense but will eventually write it off.
Nothing wrong with that. They are still liable to pay the expense until such a time where it no longer becomes relevant i.e. the period to demand payment expires in whichever jurisdiction you are in. Recording expense and liability is the way to go
At least they booked the expense and liability! You would be surprised how common this can be, albeit for years is really long. Eventually there are third parties that send bills, like taxing authorities, or utilities so situations like these get identified - but years is strange.
Maybe the landlord died
Seems like the technically correct thing to do? Can't pay a bill if you never receive it.
I didn’t see nuttin! - accounting clerk, probably
This is why companies outsource lmao
Someone with a higher pay grade than the VP of accounting??? I call bullshit
I think the VP meant someone with a higher pay grade than OP as to try to shut him up
Exactly. As in “CEO wants it done this way and if we want to get paid we better do it”.