Category Archives: Uncategorized

Lease Accounting when Tenant Must Return the Asset to its Initial Condition.

Have you ever entered into an operating lease for a building, constructed leasehold improvements, and determined based on the provisions of the lease that you are legally obligated to remove the leasehold improvements at the end of the lease? Did … Continue reading

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Straight-line calculation for leases where tenant is required to expand in future (Must Takes)

In our last blog, we addressed accounting for leases when a lessee is granted access to a part of a building at first and then granted access to the rest of the building at a later date. This week’s blog addresses a … Continue reading

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Using Excel for Lease Accounting Cost Our Client Over $28,000 dollars in Overpayments. How Much Could it be Costing You?

You won’t believe how much we just saved a client! We often tell you how we save our client’s money, but today, as quoted directly from Jerry Maguire, we would we would like to show you the money. In today’s post we will show … Continue reading

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How to Account for Tenant Improvement Allowances Under GAAP

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 … Continue reading

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Effective Date SET for New Lease Accounting Rules!!!

On November 11, 2015, the FASB set the effective date for the proposed new leasing standard; it is effective in 2019 for public companies and 2020 for private companies. Early adoption is permitted. The final standard is to be published … Continue reading

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