Reimbursement from Lessor

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Akeem
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Joined: 12 Jul 2019, 20:42

Reimbursement from Lessor

Post by Akeem »

Company A (lessor) agrees to reimburse Company B (lessee) for money incurred to repair the damaged part of the building on lease.

Should the reimbursement should treated as a reduction of lease (rent) payment or other income?
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Marek Muc
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Re: Reimbursement from Lessor

Post by Marek Muc »

when the building was damaged? before entering into the lease by Company B or during the lease?
Akeem
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Re: Reimbursement from Lessor

Post by Akeem »

Thanks Marek

It was during the lease period

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Marek Muc
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Re: Reimbursement from Lessor

Post by Marek Muc »

so I think the costs of this repair should be expensed in P/L as incurred and the reimbursement is other income recognised immediately in P/L as well
Akeem
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Joined: 12 Jul 2019, 20:42

Re: Reimbursement from Lessor

Post by Akeem »

Thanks
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