As entities continue to navigate the current economic conditions, they are looking to contain costs. As part of this movement, many lessees are considering making changes to their leases by various methods including, but not limited to:

  • Terminating leases early, either through full or partial terminations
  • Negotiating reduced lease payments
  • Subleasing space

This article discusses the accounting for each of these methods.

Source: RSM US LLP.
Reprinted with permission from RSM US LLP.
© 2024 RSM US LLP. All rights reserved. https://rsmus.com/insights/financial-reporting/early-lease-terminations-reduced-payments-and-subleases.html

RSM US LLP is a limited liability partnership and the U.S. member firm of RSM International, a global network of independent assurance, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. Visit rsmus.com/about for more information regarding RSM US LLP and RSM International.

At Keegan Linscott & Associates, our people are our greatest asset. We embody a commitment to our people in our culture of openness, cooperation, teamwork and community service. Keegan Linscott provides exceptional training, coaching, a positive work/life balance and opportunities for personal and professional development. Keegan Linscott’s dedicated team of multi-faceted professionals stand ready to provide the highest quality of audit, tax and consulting services to our valued clients and community. We are leaders in our practice areas and are uniquely qualified to provide innovative and practical solutions.

As a group of practitioners working together, the professionals at Keegan Linscott are able to specialize in specific areas of accounting, audit, taxation, and consulting – a key advantage which allows us to offer a higher standard of service quality.

For more information on how Keegan Linscott & Associates, PC can assist you, please call (520) 884-0176.