Lessee and Lessor Accounting

Overview

What you need to know about the lessee and lessor accounting models This course explains the lessee accounting model, including

Lease and non-lease components Lease classification Amortization of the right-of-use asset Interest on the lease liability

This course also explains the lessor accounting model, including Transfer of risk Profit recognition Collectibility

Included in this course are detailed and illustrated examples with amortization tables and journal entries.

Prerequisites

Experience in application of accounting standard

Objectives

• 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.

Highlights

Lessee and lessor accounting models Lease and non-lease components Lease classifications Initial and subsequent measurement of leases