Financial reporting for modifications
Get help reporting modifications during COVID-19
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.
Gain clarity before you act
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.
Set up repeatable processes
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.
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.
Look to our experienced team for reporting assistance with any type of modification:
- Lease concessions
- Debt modifications
- Revenue contract modifications
- Employee compensation and terminations
Explore our related services and solutions
Financial reporting
Asset impairment accounting
Accounting for government assistance
Financial reporting
Asset impairment accounting
Accounting for government assistance
We’re ready to share our financial reporting expertise
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.
