Note: This only applies to FAS 13 and IAS 17
For FAS 13 and IAS 17, if the Report Lease Incentives Separately from Rent box is checked (in System Options, on the Selections tab; previously called Tenant Allowance), the amounts in Lease Incentives are amortized separately from rent, with their own accounts for income and balance. If unchecked, the lease incentives are subtracted from the overall operating rent due over the life of the lease, reducing the level rent recognized each period, as specified in FASB Technical Bulletin 88-1.
In ASC 842/ IFRS 16/ GASB 87 reporting, lease incentives are automatically included in the right-of-use asset, and this option has no effect.