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how do you treat renovation cost on a leased building

we did some renovations on our leased property which expires in June 2018. we have depreciated the renovation costs over the lease period of 3 years. what happens when the lease term expires

asked May 16, 2017 in IAS 16 - Property, Plant and Equipment by Ruth

1 Answer

0 votes
i am mentioning general concept regarding this issue,for specific answer please elaborate the nature of leased asset.
Renovations would go into a general ledger account called leasehold improvements (if the property is leased) or building improvements (if the property is owned). On a balance sheet, they would both be classified as property, plant and equipment. For as long as these renovations remain in existence (i.e. property is not sold or abandoned), they will remain on the balance sheet.
answered May 17, 2017 by veshmalahotra Level 4 Member (9,780 points)