FASB’s new lease standard (ASU 2016–02, Topic 842) made significant changes in lessee
accounting and disclosure. Lessor accounting only had minor changes from prior
guidance. Effective in 2019 (or 2020 for nonpublic companies), most long-term leases will
be capitalized onto the balance sheet of lessees as right of use (ROU) assets and lease
payment liabilities. The balance sheet implications to lessors depends on the type of lease.
This 8-hour program will take a deep dive into lease accounting based on the new guidance
covering all aspects of lessee and lessor accounting and disclosures, from transition
and implementation, assessment of policy options and alternatives, and application
and reporting of the subsequent measurement. It will also illustrate the accounting for
finance and operating leases for both lessees and lessors and discuss related business
implications of the new lease standard. Workshop cases will reflect the nature of the
decision tree to be assessed, showing transition, initial measurement, subsequent
measurement, and the pros and cons of practical expedients and policy elections.
DESIGNED FOR
CPAs, accountants, and financial professionals in companies that are lessees or lessors,
as well as CPAs providing audits or reviews for clients that are lessees or lessors.
BENEFITS
- Describe the new lease terminology including finance and operating leases
- Define a lease contract and identify the pros and cons considerations of practical
expedients and policy election options
- Establish a lease implementation checklist and plan
- Identify and describe the recognition and measurement techniques for lessee right of
use (ROU) assets and lease payment liabilities
- Through the use of workshop cases, develop the expertise necessary to account for
finance leases and operating leases by both lessees and lessors following the new lease
guidance
HIGHLIGHTS
- Definition of a lease
- Searching for embedded leases in contracts
- Operating leases
- Finance leases including lease classification
- Allocating consideration to lease components and non-lease components
- Identifying the proper lease term
- Interaction with revenue recognition rules
- Lease modifications and terminations
COURSE LEVEL
Basic
PREREQUISITES
Prior exposure to lease accounting as a lessee or lessor will be helpful.
ADVANCE PREPARATION
None
ADDITIONAL NOTES
Course materials will be distributed electronically. To access, visit your
My Events page. Download to your laptop or tablet prior to your seminar. Handouts are added as received.