The Bottom Line on the New Lease Accounting Requirements - VIRTUAL

Overview

Which leases are within the scope of FASB ASC 842, Leases, and what are the basic accounting, financial reporting, and disclosure requirements? This course addresses those questions by focusing on the basic core principles of this major standard. By centering on the core principles of this significant standard, we provide clarity on essential topics such as the identification, recognition, measurement, presentation, and disclosure requirements for leases. Engaging case studies are incorporated throughout the course to illustrate the application of the standard. Additionally, this course explores the lessee accounting model, shedding light on lease classification, amortization of the right-of-use asset, and the calculation of interest on the lease liability. This course also examines the accounting model for lessors, addressing key considerations such as profit recognition and the assessment of collectability.

Prerequisites

Experience in application of accounting standards

Objectives

This course is intended to familiarize the learner with the key aspects of the leases standard, FASB ASC 842. When you complete this course, you will be able to:

• Recognize arrangements which meet the scope requirements for lease accounting under FASB ASC 842.
• Recognize lessee accounting requirements for operating leases and finance leases under FASB ASC 842.
• Recognize lessor accounting requirements for sales-type, direct financing, and operating leases under FASB ASC 842.
• Recognize presentation requirements for lessees and lessors under FASB ASC 842.
• Recognize business factors to consider when implementing FASB ASC 842.

Highlights

• Lease classification
• Amortization of the lease asset
• Derecognition of the underlying asset
• Recognition of lease receivables