USA Leasehold Improvement Amort Start Date

[Calculate003]

Question about the timing of the start of amortization for a leasehold improvement...

If we have LHI expenditures in January, but the lease starts in March, does amortization start in March or January? I think it's March, but can't find anything definitive.

Thanks for any comments.

 

[kirby]

It is March. You will not find this in a FASB statement as it is too basic. If you need a cite refer to an Intermediate Acctg textbook.

 

[Calculate003]

I totally agree, and this seems pretty basic to me. The only reason that I asked it at all it is that the question originated from a CPA I know. I'm not a CPA, but thought I might be missing something here.

Thanks for the response.

 

[kirby]

I’ve known CPA’s who didn’t know if they needed to debit or credit the cash account to increase it, who didn’t know how to calculate a tax provision, and who recommended a credit adjustment to an account while not recommending the debit side (thus recommending making a one sided entry).