In times of economic uncertainty, financial reporting for modifications becomes a challenge. The number of modifications to report generally increases, as does the complexity of each, with errors and oversights becoming more common.
Before recording the effects of a contract modification, you must first determine the correct accounting model to apply to your circumstances. 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.
Your business should also understand the reporting and disclosure implications of modifications before engaging with a lender, landlord, supplier, employee, or customer.
Financial reporting for modifications requires tremendous attention to detail. Incorrect application of U.S. GAAP could lead to material misstatements in your financial statements.
It is also critical to establish strong financial reporting processes and controls to minimize the risk of errors and noncompliance.
Our financial reporting specialists can provide detailed accounting guidance and support to help you appropriately capture modifications in your financial reporting.
Look to our experienced team for reporting assistance with any type of modification:
Keep up with changing guidance and requirements for your industry.
Asset impairment accounting
Receive guidance on appropriate accounting models, testing, financial reporting, and valuation services.
Accounting for government assistance
Access accounting guidance for PPP and other government grants and loans.
Crowe accounting professionals have deep expertise in all types of modifications. We can integrate seamlessly with your team to provide guidance and support all of your modification accounting and reporting needs.
Navigating debt modifications in 2021
10 financial reporting reminders for PPP borrowers
Contract modification pain points: How to overcome key challenges
FAQs about debt modification accounting
Accounting for lease concessions in a COVID-19 environment
Accounting for leases: FASB makes important COVID-19-driven changes
Financial reporting considerations: Evaluating accrued interest receivable on loan deferrals
Loan Modifications: An Important Message About the Interagency Statement