New FASB FAQ on COVID-19 Lease Accounting Issues
COVID-19 is expected to cause many lease modifications and concessions. Guidance in Accounting Standards Codification 840 and 842 includes analysis to determine whether a modification results in a new lease or a continuation of the existing lease on a contract-by-contract basis. This guidance was intended for routine, negotiated modifications and did not contemplate the size, scale and temporary nature of COVID-19 changes. This article details frequently asked questions from FASB that address lease concessions.