FAS 13 - Lease Accounting

[Michael Germinario]

Hi BP,

Can anyone help me with this accounting question?

Scenario:  Company ABC is renting a warehouse with 3% rent increases.  For accounting purposes we straight-line the rent expense (P&L) and record the difference as a liability (Bal Sheet).  Company ABC decides to cease business in the warehouse; however, still continues rent payments through the end of the lease term.  Do we still need to apply FAS 13 and straight line the rent, or since the Company is renting a now vacant warehouse with no business purpose it's no longer applicable?

Not a typical BP question, but if any CPA's out there are familiar with this I'd love to know!

Thanks,

Mike