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Hi
I wonder if anyone could help me.
If you spend 6m of leasehold improvements in year 2 of a 5 yr lease you would amortise the asset a 2m per year (6m/3 years).
However if one year later, yr 3, the company changes it’s decision making and signs a new 5 year lease. Now, do you
1) carry on amortising at 2m per yr for the remaining 2 years
2) amortise the amount in the balance sheet, ie 2m over 7 years (2yrs + 5yrs)
3) reinstate the prior period to amortising the original leasehold improvement value (6m) & amortise it over 10 years? (6m/10 years)
Thank you for your help.
Does anyone know where I can find evidence of this as back up
I wonder if anyone could help me.
If you spend 6m of leasehold improvements in year 2 of a 5 yr lease you would amortise the asset a 2m per year (6m/3 years).
However if one year later, yr 3, the company changes it’s decision making and signs a new 5 year lease. Now, do you
1) carry on amortising at 2m per yr for the remaining 2 years
2) amortise the amount in the balance sheet, ie 2m over 7 years (2yrs + 5yrs)
3) reinstate the prior period to amortising the original leasehold improvement value (6m) & amortise it over 10 years? (6m/10 years)
Thank you for your help.
Does anyone know where I can find evidence of this as back up