Get help with modification accounting and reporting for today’s business challenges

In times of economic uncertainty, modification accounting and reporting becomes a challenge. The number of modifications to report generally increases, as does the complexity of each, with the potential for errors and oversight becoming more commonplace.

Different types of modifications are accounted for in different ways. You need a clear understanding of the modification terms and accounting guidance to map out the right approach and generate documentation and disclosures that are audit ready.

Accurately reporting contract modifications can be difficult and complex

Before reporting the effects of a contract modification, you must first determine the correct accounting model to apply to your circumstances. Consult with our experienced accounting professionals who can help you avoid mistakes.

We bring an in-depth understanding of the accounting for modifications to debt, leases, revenue contracts, supplier contracts, and employee compensation and terminations.

Before engaging with a lender, landlord, supplier, employee, or customer, you also should understand the reporting and disclosure implications of modifications for your business.

Set up repeatable processes

Modification accounting and reporting requires tremendous attention to detail. Incorrect application of U.S. GAAP could lead to material errors in financial statements. 

Establishing strong financial reporting processes and controls to minimize the risk of errors and noncompliance also is critical.

Don't miss an update
Keep up on the latest in accounting and financial reporting with insights from our specialists.

Modification guidance tailored to your needs

Our financial reporting specialists can provide detailed accounting guidance and support to help you appropriately capture modifications in your financial reporting.

Financial reporting review
We can review your contracts to determine the appropriate accounting treatment for your modifications.
Financial reporting review
Process improvement
Let us help you develop or refine your accounting policies, processes, and related internal controls.
Process improvement
Disclosure advice and preparation
Receive timely assistance in preparing the required disclosures for your financial statements.
Disclosure advice and preparation

Look to our experienced team for reporting assistance with any type of modification:

  • Lease concessions
  • Supplier contracts
  • Debt modifications
  • Revenue contract modifications
  • Employee compensation and terminations

Check out Take Into Account

Keep up with accounting guidance and hot topics.

Featured insights

loading gif
SEC final rules enhance disclosures for SPAC IPOs
SEC final rules on disclosures for special purpose acquisition company (SPAC) IPOs should increase investor protections. Learn more.
FASB issues proposal on convertible debt instruments
A FASB proposal would improve guidance on accounting for induced conversions of convertible debt instruments. Get details and an illustrative example.
GASB updates disclosure requirements for certain risks
Learn how governments should prepare for GASB Statement 102 disclosure requirements regarding risks related to certain concentrations or constraints.
CECL standard considerations for nonbanking companies
Learn how the FASB’s current expected credit losses (CECL) standard applies to nonbanking entities – and what they should do to prepare.
FASB issues changes to segment reporting requirements
Learn about FASB Accounting Standards Update 2023-07, which changes segment reporting requirements for public entities.
FASB finalizes enhanced income tax disclosure requirements
The FASB has issued Accounting Standards Update 2023-09, which makes targeted improvements to income tax disclosure requirements. Learn more.
SEC final rules enhance disclosures for SPAC IPOs
SEC final rules on disclosures for special purpose acquisition company (SPAC) IPOs should increase investor protections. Learn more.
FASB issues proposal on convertible debt instruments
A FASB proposal would improve guidance on accounting for induced conversions of convertible debt instruments. Get details and an illustrative example.
GASB updates disclosure requirements for certain risks
Learn how governments should prepare for GASB Statement 102 disclosure requirements regarding risks related to certain concentrations or constraints.
CECL standard considerations for nonbanking companies
Learn how the FASB’s current expected credit losses (CECL) standard applies to nonbanking entities – and what they should do to prepare.
FASB issues changes to segment reporting requirements
Learn about FASB Accounting Standards Update 2023-07, which changes segment reporting requirements for public entities.
FASB finalizes enhanced income tax disclosure requirements
The FASB has issued Accounting Standards Update 2023-09, which makes targeted improvements to income tax disclosure requirements. Learn more.

Work with us

Crowe accounting advisory professionals have deep expertise in all types of modifications. We can integrate with your team to provide guidance and support all your modification accounting and reporting needs.

Contact us to learn more about Crowe financial reporting services

Our team has extensive experience in financial reporting and technical accounting. Complete the form below and one of our financial reporting specialists will contact you to learn more about your business needs. We look forward to working with you.

Captcha is required.