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hi iamp;#39;m lori greer from atlanta georgia and iamp;#39;m here to discuss deferred rent receivable versus straight line rent the cumulative difference between the rental income or payments required by a lease agreement and the rental income or expense recognized on a straight-line basis or other systematic and rational basis more representative of the time pattern in which use or benefit is granted or derived from the lease property expected to be recognized in income or expense by the lessor or leasee respectively more than one year after the balance sheet date such receivables should be reduced by allowances attributable to for instance credit risk associated with a lessee straight line rent uses the same principle assuming rent costs are standard for the life of a lease as that of a straight-line accounting method that provides a means to evenly spread costs over a fixed length of time often used when determining the depreciated value of an asset straight-line depreciat