Sublease Accounting under GAAP and FASB ASC 840

Sublease Accounting under GAAP and FASB ASC 840

Have you ever leased a space, decided you no longer require it, then subleased the space to a third party? Did you continue making payments to the Landlord under the initial lease while collecting payments from the third party under the sublease? Did you account for...
Free Rent and Early Access in Lease Accounting

Free Rent and Early Access in Lease Accounting

Today‚Äôs article is a detailed response to a question we received about calculating straight-line rent. This is a common scenario that many businesses are accounting for incorrectly. Here’s a question on calculating straight-line rent during an early occupancy...
Tenant Improvement Allowance Accounting the Correct Way

Tenant Improvement Allowance Accounting the Correct Way

This post will explain the correct way to account for a tenant improvement allowance and other lease incentives under the current GAAP lease accounting rules in two parts. The first covers how to tenant improvement allowance (TIA) accounting under the current GAAP...