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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Sub-Lease

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 27, 2017 at 9:16 am #413383
    frry06
    Participant
    • Topics: 17
    • Replies: 67
    • ☆☆

    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

    October 29, 2017 at 8:40 pm #413660
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    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

  • Author
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