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 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.
This course explains the lessee accounting model, including lease classification, amortization of the right-of-use asset, and interest on the lease liability. This course also explains the lessor accounting model, including transfer of risk, profit recognition, and collectability. Additional 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.
Amortization of the lease asset
Derecognition of the underlying asset
Recognition of lease receivables
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
Accountants in practice and industry