 Hello, in this lecture we will define leasehold improvements. According to fundamental accounting principles, while the 22nd edition, the definition of leasehold improvements is alterations or improvements to leased property such as partitions and storefronts. So when we're thinking about leasehold improvements, we're thinking about the leased property, meaning we have two parties involved here, the lease or the person leasing the property, the leasy, the person who has leasing the property, meaning the person who is having use of the property, although not ultimate ownership of the property. For example, if we had a piece of property here that was then leased, there could be alterations to this property that could be under the category of leasehold improvements, possibly a storefront altering the property, putting partitions in that property in order to make it ready for business usage. It's important to note when we think about the leasehold improvements that the leasehold improvements are going to be made, and the use of those leasehold improvements will be available to the leasy, the person using the property, not the owner of the property. At the end of the lease term, however, those leasehold improvements generally revert back to the lease or.