Title: Accounting for Leasehold Improvements & Real Estate CAM
Headings: ASC 842 FAQ: How to account for real estate CAM charges and leasehold improvements
ASC 842 FAQ: How to account for real estate CAM charges and leasehold improvements
Real Estate CAM (common area maintenance) Accounting FAQs
1. What are CAM expenses?
2. How do the new lease accounting standards affect CAM accounting?
3. How should I handle CAM reconciliation?
Accounting for Leasehold Improvements FAQs
1. What are leasehold improvements?
2. How are leasehold improvements impacted by the new lease accounting standards?
How do CAM and leasehold improvements impact my leasing strategy?
Author Visual Lease
Lease Accounting
Lease Administration
Lease Management

Content: Either the landlord or tenant are made “whole” through the reconciliation process. Accounting for Leasehold Improvements FAQs
1. What are leasehold improvements? Leasehold improvements (LHI) are defined as capital improvements made to a tenant’s space such as dry wall, electrical, carpeting, lighting, etc. Most office leases offer what is called a “work letter”, which defines what the building owner will provide to the tenant in terms of basic improvements. These improvements can be offered as a credit in the rent or provided separately. Leasehold improvements are typically provided over and above the building allowance. The tenant will typically amortize the improvements over the term of the lease, and in most cases the improvements revert to the building owner upon lease termination. 2. How are leasehold improvements impacted by the new lease accounting standards?