Under the current ASC 842 lease accounting rules, rent concessions and other lease modifications could trigger the remeasurement of right of use assets and lease liabilities for each lease affected. If you report under the international standard IFRS 16, help is potentially on the way that could ease this burden. In the U.S., FASB has already proposed the delay of ASC 842 adoption for private and not for profit entities; U.S. public companies should be on the lookout for potential remeasurement relief for COVID-19 related lease modifications. See this article in the Wall Street Journal for more commentary on this topic.
IASB Proposes Coronavirus Relief on How Companies Account for Their Rent Concessions
April 27, 2020
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