Leasehold

The right to occupy a property at a specified rental for a specified period of years. To obtain a long-term lease at a favorable rental a cash bonus may be paid by the lessee to the lessor (owner), if it is a new lease, or to the former lessee, if the lease is taken over. The balance-sheet item “leaseholds” should represent only this cash consideration, and should be amortized over the life of the lease.