USA Why “Lease Incentive Obligation” is shown as liability on Balance Sheet of Lessee?


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As per info available, Lease Incentive is some benefit offered by Lessor to attract Lessee to enter in a lease: source

Still, some Lessees report Lease Incentive Obligations as Liability on Balance Sheet. Example - WAVE Life Sciences Ltd 10-k: 10-K report
(Note - WAVE Life Sciences Ltd is not a client. Quoted this an example as it's a live example with report publicly available on SEC website)

I think "Lease Incentive Obligations" is an accounting adjustment and not a real obligation for Lessee as Lease Incentive is a benefit for Lessee, not a charge/obligation. But, I am not able to understand this and explain to others this concept with accounting logic.
 
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kirby

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It represents unearned lease incentive. Read footnote 8
 

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