In The News: Pandemic alters lease accounting landscape
The coronavirus pandemic has significantly impacted lease accounting for CPAs by prompting a potential delay in the effective date of FASB’s new lease standard for some entities, causing a surge in lease modifications, and increasing the need for detailed disclosures about lease accounting decisions.
In addition to causing enormous disruption to health, safety, and the economy across the globe, the coronavirus pandemic has significantly altered the landscape for CPAs related to the lease accounting standard.
The changes include a potential effective date delay of FASB’s new lease accounting standard for certain entities, including private companies; a monumental increase in the number of lease modifications requested by lessees and granted by lessors; and the need for disclosures related to a company’s lease accounting decisions in the new environment.
Here’s a closer look at lease accounting amid the coronavirus pandemic.