Investment in a leased property

Yestin

Hello Everyone,

Short question today.

How would you go about accounting for a £200,000 investment in a property that you do not own but are leasing for 10 years?

Thanks in advance for any suggestions.

Yestin

deanshepherd

Capitalise and amortise over the period of the lease?

Nick

amortise it

I agree - capitalise as a lease premium and amortise over 10 years

Yestin

Thanks guys! Seems like the best way to go about it.