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Leasehold Improvements in Progress

How do you account for leasehold improvements you are paying for until the work is completed and you are ready to start amortizing? I will be getting invoices in soon for the work as it's done and I'm not sure what type of account it goes to - seems like it should go to a WIP then moved to leasehold improvements when it's done or just book it directly to leasehold improvements and don't amortize until it's finished? Any ideas? Thanks.


(Financial Service) |

It should be debited directly to leasehold improvement, or to leasehold improvement in progress account, and should not be mixed with WIP. account ,
WIP account is generally for revenue earning items work in progress.

Anthony Pascente
Title: CFO
Company: TWFG Financial Services
(CFO, TWFG Financial Services) |

You debit Leasehold Improvement and you start amortize it over the life of the lease when the work is completed.

(N/A) |

Would this be subject to the company capitalization limit?


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