By Ane Ohm on Aug 14, 2020 9:26:04 AM
Since the outbreak of the COVID-19 pandemic in March 2020, CPA firms are seeing a large increase in the number of clients asking about lease concessions.
No one, including FASB, could have foreseen a global pandemic causing this much uncertainty around lease accounting. Between the move to working from home and the major economic disruption, many businesses’ needs have shifted dramatically, particularly as it relates to real estate
Many businesses are negotiating short- or long-term lease concessions to preserve cash flow and strengthen their financials. However, there’s a big difference between what qualifies as a lease concession and what requires a lease modification.