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, meas-urement, presentation and disclosure requirements. Examples with journal entries are included to illustrate ap-plication 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 op-tions, variable lease payments, and sale and leaseback transactions. In addition, this course addresses the busi-ness context of implementing the new standard by identifying key factors for managing this significant change.
When you complete this course, you will be able to: · 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
• 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
Accountants in practice and industry
Experience in application of accounting standards