In the difficult business environment caused by the impact of COVID-19, many lessors and lenders are receiving requests from their customers for some form of payment accommodation. Navigating modification accounting, application of the Financial Accounting Standards Board’s (FASB) COVID-19 related relief and operational considerations when modifying contracts were among the topics addressed during the Equipment Leasing and Finance Association’s May 27 webinar, “Lease and Loan Modifications and Restructurings in the COVID-19 Environment.”
A total of 508 industry executives participated in the detailed online event presented by Mamta Shori, chief operating officer, Wells Fargo Equipment Finance; Tim Kolber, managing director, National Accounting Office Services, Deloitte; and Shawn Halladay, chief financial and operations officer, The Pitney Bowes Bank and moderated by John Bober, IXL Lease Advisory Services and chair of ELFA’s Financial Accounting Committee. They offered considerations and approaches to account for customer concessions and responded to participants’ questions.
As equipment finance companies provide their customers with the contract modifications critical to preserving their cash flow and their businesses, below are five highlights from the range of information presented during the webinar.
The COVID-19 pandemic has had a pervasive impact on businesses throughout the U.S. and many lessors are, or will be, providing lease concessions to lessees for a significant number of lease contracts. As Tim Kolber noted, cash is king at this point because companies need to think of ways to preserve their organizations, pay their employees and “live to fight another day.”
A recording of the webinar, webinar slides, and a handout, “FASB Staff Q&A” are available here.
The May 27 webinar was part of ELFA’s “Wednesday Webinar” series designed to help equipment finance professionals navigate the current market and regulatory landscape and anticipate the changing environment in the face of the COVID-19 pandemic. The free webinars include live Q&A sessions so participants can connect with experts and colleagues on the issues they are grappling with. Register for upcoming webinars or view recordings of past events here.
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