New FASB FAQ on COVID-19 Lease Accounting Issues

Thoughtware Alert Apr 13, 2020
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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.

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