Enter here landlord incentives for construction or leasehold improvements (payments made to you or on your behalf which should be amortized over the life of the lease). Enter such incentives as a negative number.
ASC 842/IFRS 16/GASB 87 require lease incentives to treated as a reduction of the ROU asset. For an operating lease, you can see the amortization of the lease incentives by running the Operating Leases Verification report, which breaks out the individual components of the accumulated amortization.
For FAS 13 reporting, you may choose whether lease incentives should be reported separately or combined with operating rent. If shown separately, lease incentives are reported on the Income Statement/Balance Sheet Detail report and on the Journal Entries report. They are not reported on the Income Statement/Balance Sheet Compact report.