Overview
Do you know which leases are within the scope of FASB ASC 842, Leases and how to apply the new financial accounting, financial reporting and disclosure requirements of this new major standard?
This webcast addresses those questions by examining the core principles of the standard, including identification, recognition, measurement, presentation and disclosure requirements. Examples with journal entries are included to illustrate how to apply the standard.
Additionally, you will learn:
The lessee accounting model, including lease classification, amortization of the right-of-use asset, and interest on the lease liability
The lessor accounting model, including transfer of risk, profit recognition and collectability
Short-term leases, purchase options, variable lease payments, and sale and leaseback transactions
The business context of implementing the new standard by identifying key factors for managing this significant change
Prerequisites
Experience in application of accounting standards
Objectives
- 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 accounting requirements for lease modifications under FASB ASC 842
- Recognize accounting requirements for sale and leaseback transactions 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
Lease modifications:
- Sale and leaseback transactions
- Presentation, disclosure and transition requirements
The business context for implementing FASB ASC 842
