Retail Rent Breaks From Pandemic Add to Accounting Turmoil

Chipotle Mexican Grill Inc. and accessory brand Fossil Group Inc. were among the restaurants and retailers seeking rent concessions this spring to ease cash flow as stay-at-home orders slammed their businesses.

Businesses may appreciate the rent breaks, but they are another burden for accountants during an already tricky time for financial reporting. Lease accounting rules changed last year, forcing companies to track the value of leased assets like airplanes and warehouses.

Calculating current values of changing lease terms during an evolving pandemic may be some of the hardest accounting companies have ever faced.

“It’s a perfect storm of things coming ...