My business leases the building we inhabit. We have quite a bit of money capitalized as leasehold improvements. We purchased the building. How do we account for those improvements on BS and IS.

My business leases the building we inhabit. We have quite a bit of money capitalized as leasehold improvements. We purchased the building. How do we account for those improvements on BS and IS.

I would have expected you would have already capitalised and depreciated the leasehold improvements. If you have written them off then a revaluation of the building will absorb the improvements

I would have expected you would have already capitalised and depreciated the leasehold improvements. If you have written them off then a revaluation of the building will absorb the improvements

Thanks you for the reply. The leasehold improvements were about 1/2 depreciated when we decided to purchase the building. Should we writeoff the remainder of the book value to depreciation expense or other, such as loss on retirement/disposition of fixed assets?