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...
Rent Abatement and Rent-Free Period Accounting for ASC 840

Rent Abatement and Rent-Free Period Accounting for ASC 840

Calculating straight-line rent for an operating lease that includes a rent-free period is a common scenario. However, many businesses are incorrectly accounting for this type of lease. In this article, we’ll demonstrate the correct method of performing this...
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...