Which of the following are the correct accounting treatments for lease incentives in the 2024 Japan Architect Examination
Which of the following are the correct accounting treatments for lease incentives in the 2024 Japan Architect Examination? ( )
A. The lessee shall offset lease incentives against the cost of the right-of-use asset
B. The lessee shall include lease incentives in current profits and losses
C. The lessor shall offset lease incentives against rental income
D. The lessor shall include lease incentives in current expenses
Answer: AC
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); the lessor shall offset the lease incentives against the current rental income. Options B and D are incorrect.
