Title: Leasehold Improvements: Accounting Treatment and Depreciation | WIKIACCOUNTING
Headings: Leasehold Improvements: Accounting Treatment and Depreciation
Leasehold Improvements: Accounting Treatment and Depreciation
Overview
Accounting for Leasehold Improvement
Are Leasehold Improvements Fixed Assets?
Depreciation
What are leasehold improvements on a balance sheet?

Content: Leasehold Improvements: Accounting Treatment and Depreciation | WIKIACCOUNTING
Leasehold Improvements: Accounting Treatment and Depreciation
Fixed Assets
Overview
Leasehold Improvement can be described as the changes that are made to the leased or rental property in order to ensure that it is best suited for the purposes of the tenant. During the course of the lease agreement, there might be a number of changes that the tenant requires in order to bring the property to its proper usage. When making changes in the structure, or the building, it is important to consider the fact that leasehold improvements are mostly undertaken by the property owner, and therefore, they need to be properly accounted for in order to get the best possible results. However, there is no hard and fast rule that leasehold improvements need to be solely undertaken by the property owner only. In certain cases, the tenant can also provide for these expenses, after bringing them to the notice of the property owner. As a matter of fact, it is also highly important to ensure the fact that these leasehold improvements are often significant in terms of the financial value, and therefore, they need to be properly accounted for in order to make it best suited to both parties. Some examples of leasehold improvements include paintings, replacement of fixtures and fittings, and other miscellaneous expenses that might be relevant in this regard. Accounting for Leasehold Improvement
Leasehold Improvements can be considered to be either an asset or an expense.