Lease: An agreement whereby the owner of real property (the landlord or lessor) gives the right of possession to another (the tenant or lessee) for a specified period of time (the terms of the lease) and for a specified consideration (the rent or lease payments).
Straight line: The straight-line method implies that the cash flows in the form of fixed lease payments over the lease term are aggregated and divided by the lease term to arrive at the monthly income or expense. This results in an equal impact in the income statement in each reporting period irrespective of the fact that cash flows differ.
Escalation: A clause in a lease which provides for the rent to be increased to reflect changes in expenses paid by the landlord such as real estate taxes, or operating costs. An escalation can be accomplished by several means such as fixed periodic increases, increases tied to the Consumer Price Index, or adjustments based on changes in expenses paid by the landlord in relation to a dollar or base year reference.
In addition to the terminology above, you can find more information about the special fields that can be used on Lease business processes in the Primavera Unifier and uDesigner Reference Guide.
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