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In this video tutorial from Accounting Academy, host Fitz, accompanied by his dog FIFO, assists Paul, the owner of a veterinary clinic chain called Pet Vet. Paul seeks guidance on accounting for changes to his leases following the expansion of one of his clinics. He explains that his clinic is increasing its space from 1,000 to 2,000 square feet, but the new square footage is being added at a higher market rate. Fitz acknowledges that this expansion will result in higher costs compared to the original lease. The video focuses on exploring the implications of these lease modifications and how to appropriately account for them in Paul's business.
