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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Sub-Lease
If you are leasing an office space, lets say 1000 sqm for 10 $ per sqm per year.
After a year you realize you have 200 sqm excess office space and you decide to sublease it to another company.
You manage to find a tenant , but they only pay 8$ per sqm for the 200 sqm. Do you need take the loss directly for the 2 $ per sqm, till the end of the contract when the sublease is signed?`
thanks in advance.
Fredrik
Hi,
I don’t think it’s a simple as saying that there is a loss of $2/sq.m as the size of the leased office space is not the same.
You would account for the lease as the lessee for the $10/sq.m and then account for the $8/sq.m as the lessor.
Thanks