Accounting for Lease Incentives under ASC 842

Accounting for Lease Incentives under ASC 842

1. What is a lease incentive? 2. It’s a lease incentive: How do we treat it? Leasehold improvements Leasehold improvements: Lessor asset Leasehold improvements: Lessee asset Lease incentive impact to opening lease liability and ROU asset Lease incentive example 3....