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?
Reimbursement from Lessor
Re: Reimbursement from Lessor
when the building was damaged? before entering into the lease by Company B or during the lease?
Re: Reimbursement from Lessor
Thanks Marek
It was during the lease period
Regards
It was during the lease period
Regards
Re: Reimbursement from Lessor
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