From the point of view of the lessor,any lease rentals that are a recovery of executory costs should be treated as:

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Executory costs recovered through lease rentals are treated as revenue by the lessor in the periods in which the related costs are incurred. This approach aligns the recognition of revenue with the period in which the costs that the revenue is intended to cover are incurred, ensuring accurate financial reporting.

From the Point of View of the Lessor,any Lease Rentals