A sublease is an arrangement where a tenant (the sublessor) rents out all or part of their leased property to another party (the sublessee) while still holding the original lease with the landlord. This allows the original tenant to retain some rights and responsibilities under the main lease, while transferring some use of the property to the sublessee. In the context of lessor accounting, understanding subleases is crucial as they can impact revenue recognition and financial reporting for both lessors and lessees.
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