By George Wilson
As we mentioned in this post, the FASB met on April 8, 2020, to address “Accounting Relief During the COVID-19 Pandemic.” You can read Chairman Russell G. Golden’s statement about the meeting here.
Topics addressed were primarily for private companies and not-for-profits. Steps included decisions to issues proposals for an optional one-year delay for the new leasing standard for private companies and not-for-profits and a one-year delay for the revenue recognition for private company franchisors.
The FASB is also working on a number of question and answer documents related to the disruption created by COVID-19. On April 10, 2020, the FASB published a Q&A document addressing questions dealing with lease concessions due to COVID-19. Essentially the Q&A document provides that for such concessions companies will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and “can elect to apply or not apply the lease modification guidance in Topic 842 Leases or Topic 840 Leases to those contracts.”
While the meeting minutes are not yet posted, they will be available here when they are completed. You can read a summary of the tentative decisions reached at the meeting here.
As always, your thoughts and comments are welcome!