Which of the following is the correct accounting treatment for lease incentives in the 2024 Japan Architect Examination
Which of the following is the correct accounting treatment for lease incentives in the 2024 Japan Architect Examination? ( )
A. The lessee shall include lease incentives in current profits and losses
B. The lessee shall offset lease incentives against the cost of the right-of-use asset
C. The lessor shall include lease incentives in current expenses
D. The lessor shall offset lease incentives against the cost of the leased asset
Answer: B
Explanation: For the accounting treatment of lease incentives, the lessee shall offset the lease incentives against the cost of the right-of-use asset (or the initial measurement amount of the lease liability), and the lessor shall offset the lease incentives against the current rental income.
