When a commercial lease arrives on the accountant’s desk in Taipei, the temptation is to jump straight to the monthly rent figure. That number matters, but it rarely tells the full story of what should sit in the obligation schedule.
Start with the commencement and rent-free periods. A three-month fit-out concession may be silent in the rent roll yet still shape how you spread income or expense across the first year. Indexation clauses tied to consumer prices or a building’s service charge formula need a separate line in your working papers so the next close does not reinvent the calculation.
Security deposits and bank guarantees belong in their own register. Mixing them with prepaid rent is a common source of auditor questions. Note the release conditions in plain language next to the balance—especially if the landlord may withhold for reinstatement.
Side letters and hand-written amendments deserve equal weight with the stamped contract. In practice we often find a rent reduction that never reached the ledger because it lived in an email attachment. Ask the property manager for the full correspondence file before you lock the period.
Finally, variable rents based on turnover require a sampling approach. Agree with management which months you will recalculate from sales extracts, and document why those months are representative. Your external auditor will look for that rationale.