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Are lease incentives given by the lessor to the lessee considered as ‘Intial Direct Costs incurred by the lessor’
It will depend upon the exact nature of the lease incentive as to how it will be accounted for but it does form part of the lease itself. The following link might help shed a bit more light on the different types of lease incentive but don’t get too concerned with the detail, just focus on the core concepts of leases, namely the ROU asset treatment and lease liability treatment.