more-arw search

Q&A Forum

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.

Answers

Anonymous
(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.

Anonymous
(N/A) |

Would this be subject to the company capitalization limit?

568 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.