Bloomberg Tax
April 3, 2020, 7:16 PM

Retailers Reeling From Rent Woes Seek Relief on Lease Accounting

Nicola M. White
Nicola M. White

As the coronavirus pandemic forces businesses to shutter storefronts and furlough workers, retailers want one less worry on their plates: accounting.

A group representing companies like Macy’s Inc., Modell’s Sporting Goods, and Ralph Lauren Corp. asked U.S. accounting rulemakers Friday to relax accounting rules on how to treat modifications to lease agreements like rent concessions many are asking from their landlords. If cash-strapped retailers get breaks on rent, that could trigger complex rules under the Financial Accounting Standards Board’s ASC 842 at a time when retailers are struggling to stay afloat, the National Retail Federation said.

“We are very concerned ...

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