Leases: Mastering the New FASB Requirements
Presenter
Leah Donti,
Speaker
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 major standard? This course 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 application of the standard. Additionally, this course explains the lessee accounting model, including lease classification, amortization of the right-of-use asset, and interest on the lease liability. The lessor accounting model is also covered, including transfer of risk, profit recognition and assessment of collectability. Other important topics include short-term leases, purchase options, variable lease payments, and sale and leaseback transactions. In addition, this course addresses the business context of implementing the new standard by identifying key factors for managing this significant change. This course is intended to familiarize the learner with the key aspects of FASB ASC 842, Leases, including lease modifications, sale and leaseback transactions, and leveraged leases.
Learning 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 that should be considered when implementing FASB ASC 842.
Major Topics:
- 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
