Scribd Logo
Upload

Welcome to Scribd!

  • 196 views

    Operating Lease-Concept Map

    Uploaded by

    gkem1014
    This document outlines accounting treatments for an operating lease between a lessee and lessor. The lessee recognizes rental expenses over time on a straight-line basis, treats lease bonuses as prepaid rent, and leasehold improvements as assets. The lessor recognizes rental income over time on a straight-line basis, treats lease bonuses as unearned income, and security deposits as liabilities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Operating Lease-Concept Map

    Uploaded by

    gkem1014
    196 views1 page
    This document outlines accounting treatments for an operating lease between a lessee and lessor. The lessee recognizes rental expenses over time on a straight-line basis, treats lease bonuses as prepaid rent, and leasehold improvements as assets. The lessor recognizes rental income over time on a straight-line basis, treats lease bonuses as unearned income, and security deposits as liabilities.

    Original Description:

    lease map

    Original Title

    Operating Lease-concept Map

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document outlines accounting treatments for an operating lease between a lessee and lessor. The lessee recognizes rental expenses over time on a straight-line basis, treats lease bonuses as prepaid rent, and leasehold improvements as assets. The lessor recognizes rental income over time on a straight-line basis, treats lease bonuses as unearned income, and security deposits as liabilities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    196 views1 page

    Operating Lease-Concept Map

    Uploaded by

    gkem1014
    This document outlines accounting treatments for an operating lease between a lessee and lessor. The lessee recognizes rental expenses over time on a straight-line basis, treats lease bonuses as prepaid rent, and leasehold improvements as assets. The lessor recognizes rental income over time on a straight-line basis, treats lease bonuses as unearned income, and security deposits as liabilities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    OPERATING LEASE

    Lessee

    Lessor

    Recognize expense
    Lease bonus (prepaid rent expense)
    Leasehold improvement
    Security deposit refundable (asset)

    Rental revenue/ rent income


    Lease bonus (unearned rent income)
    Initial direct cost
    Executory cost
    Security deposit refundable (liability)

    Unequal rental
    payments
    AMORTIZATION
    Straight line basis as rent expense or
    rent income

    You might also like