ARTICLE | September 30, 2024
In many leases, a lessor may provide a lessee with one or more lease incentives. Often, those incentives are paid or payable at the commencement date of the lease. However, certain other leases contain incentives contingent upon future events or actions to be taken by the lessee. Because Topic 842, Leases, of the Financial Accounting Standards Board Accounting Standards Codification does not provide guidance on accounting for contingent lease incentives, questions have arisen as to how to account for them. A new Accounting Brief, Lessee accounting for tenant improvements, addresses the accounting for these arrangements.
Let’s Talk
Fill out the form below and we’ll get back to you to discuss your specific situation.
Source: RSM US LLP.
Reprinted with permission from RSM US LLP.
© 2024 RSM US LLP. All rights reserved. https://rsmus.com/insights/financial-reporting/new-accounting-brief-on-lessee-accounting-for-tenant-improvemen.html
RSM US LLP is a limited liability partnership and the U.S. member firm of RSM International, a global network of independent assurance, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. Visit rsmus.com/about for more information regarding RSM US LLP and RSM International.
