Update reflects FASB guidance for Topic 842 and 840 issued on April 13
(April 14, 2020) — Tamarack Consulting, a leader in providing independent software solutions in the equipment finance and commercial lending industry, has expanded its Extension-of-Terms Automation Utility (ETAU) to allow restructuring of Operating Leases. The forthcoming utility update is in accordance with the guidance outlined by the Federal Accounting Standards Board (FASB) on April 13, 2020 regarding Topic 842 and 840.
“We were excited to see the clarification put forth by FASB on lease modifications,” said Daniel Nelson, CEO of Tamarack. “The announcement clarifies lease modifications performed under the FRB guidance will be viewed as concessions and not impact lease classification, under ASC 842, enabling lessors to quickly and more broadly offer assistance to companies hit by the COVID-19 pandemic.”
Launched at the end of March, Tamarack’s Extension-of-Terms Automation Utility (ETAU) offering includes integration services enabling equipment finance companies to automate lease/loan modifications. Through the new utility, lessors can batch-modify the payment structure for their customers granting, per the Federal Reserve Bank’s (FRB) guidelines, a 60 to 180-day grace period.