Capital expenditure by tenent on building

This discussion addresses the accounting treatment for capital expenditure made by a tenant on a leased property. If a tenant claims depreciation on improvements and vacates the property mid-year, the remaining balance of the expenditure needs to be accounted for. The general consensus is to write this off to the Profit & Loss account as a loss on disposal of a fixed asset. It's also advised to seek compensation from the landlord, which would reduce the amount written off.