6 Myths About the New Lease Accounting Rules!

Uncover The Facts

This post addresses the biggest misconceptions about the new lease accounting rules.

Myth 1: All Leases will be affected.

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About LeaseQuery:  LeaseQuery is lease management software that helps companies manage their leases.  Rather than relying on excel spreadsheets, our clients use LeaseQuery to get alerts for critical dates (renewals, etc), calculate the straight-line amortization of rent and TI allowances per GAAP, provide the required monthly journal entries (for both capital and operating leases) and provide the commitment disclosure reports required in the notes and the MD&A.  Contact us here.

 

How to Account for Tenant Improvement Allowances Under GAAP

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In this post I will explain the correct way to account for tenant improvement allowances and other lease incentives under current GAAP lease accounting rules.  Note that incentives refer to any payments made by the landlord to (or on behalf of) the tenant. This includes reimbursements for moving expenses, payments for tenants to break existing leases, and payments for tenant improvement allowances (even if the tenant never receives cash and simply submits invoices to the lessor for a prescribed amount of leasehold improvements that the lessor has agreed to fund).
To continue reading, click here:

About LeaseQuery: LeaseQuery is lease management software that helps companies manage their leases.  Rather than relying on excel spreadsheets, our clients use LeaseQuery to get alerts for critical dates (renewals, etc), calculate the straight-line amortization of rent and TI allowances per GAAP, provide the required monthly journal entries (for both capital and operating leases) and provide the commitment disclosure reports required in the notes and the MD&A.  Contact us here.