Commercial Rent Deposits
I have been having an interesting debate with a collegue.
We have a client who's investment company owns a commercial property. This is leased to a tennant. The rent deposit is placed in a "client account" of sorts. The client does not have access to the funds during the term of the tenancy.
The question I pose to you: Do the rent deposit in the "client account" and the corresponding liability need to be shown on the balance sheet.
I have my opinion as to the answer, but was interested as to any other opinion.