Deep Dive into Lessee & Lessor Accounting under the New Lease Accounting Standard Self-Study Webinar (4 Hours)

Deep Dive into Lessee & Lessor Accounting under the New Lease Accounting Standard Self-Study Webinar (4 Hours)

CPE Credit: 4 Hours

Price: $229.00

NASBA Field of Study: Accounting

 

Overview

This information-packed self-study webinar, drawn from our popular Lease Accounting Conference, will give you an in-depth understanding of lessee and lessor accounting under the New Lease Accounting Standard, including the classification of all leases and their impact on your balance sheet.
 

AGENDA HIGHLIGHTS


•  Lease Scope

•  Evolution of the Leasing Standard

•  Why Fix Lease Accounting?

•  Tomorrow’s ASC 842 Requirements—Lessee Model
   – Dual-model approach

   – Operating or financing under ASC 840
   – Initial and subsequent measurements with lease obligation and ROU asset criteria

•  Overview of Lease Classification Criteria

•  Recognition & Measurement for Operating & Finance Leases

•  Operating Lease under ASC 840 & ASC 842
   – Measure and recognize the lease liability and ROU asset

•  Capital Lease under ASC 840 & ASC 842
   – Measure the ROU asset and lease liability

•  Amounts Included in Lease Payments?
   – Fixed lease payments
   – Variable payments

   – Residual value guarantees
   – Purchase and termination options

•  Lease Term
   – Initial determination
   – Reassessment

•  Which Discount Rate Should Lessees & Lessors Use?

•  ASC 360 Impairment

•  ASC 420 Liabilities

•  Understanding the Implications of the Guidance
   – Real estate lease illustrative example

•  Lessor Considerations

•  Leases Targeted Improvements (ASU 2018-11) - Main Provisions
   – Transition and lessor relief

•  Criteria for Combination of Lease & Nonlease Components

•  Determining Which Component is Predominant

•  Implications of the Lessor Relief

•  Required Disclosures for Practical Expedient

•  Effective Date & Transition

•  Tomorrow’s ASC 842 Requirements: Lessor Model
   – Changes primarily driven by interaction with ASC 606
  
   – Sales-type
  
   – Direct financing
  
   – Operating

•  Overview of Lease Classification Criteria—Sales-type Lease

•  Lease Classification for Lessors—Direct Financing Lease

•  Understanding the Implications of the Guidance
   – Lessor lease 5-step illustrative example
  
   – Step 1: Identify lease terms
  
   – Step 2: Determine rate implicit in the lease
  
   – Step 3: Determine lease classification
  
   – Step 4: Record lease commencement date journal entries
  
   – Step 5: Record return of the underlying asset

•  Lessor Accounting Commencement Loss

•  ASU Issued on Lessor Narrow-Scope Improvements
   – Topics addressed in ASU 2018-20

•  ASU Issued on Codification Improvements
   – Improvements to ASC 842 addressed in ASU 2019-01

 

LEARNING OBJECTIVE  To ensure that financial professionals will be able to successfully handle both lessee and lessor issues under
the New Lease Accounting Standard.

PREREQUISITE  None.    ADVANCE PREPARATION  None.    PROGRAM LEVEL  Update.    NASBA FIELD OF STUDY  Accounting.
DELIVERY METHOD  Self-Study.

Speakers

SPEAKERS


Emily Hache, Senior Manager, Deloitte

Sallie Nold, VP of Accounting Policy, Bank of America

Allison Patti Oliviera, Partner, Deloitte

Detailed Learning Objectives

Identify leases scoped out of ASC Topic 842

Identify those leases for which a lessee must establish a right-of-use asset and a lease liability

Recognize the overall effect of the new leasing standard on lessees

Recognize the conditions under which a lessee will recognize a financing lease on the balance sheet

Recognize the components of a lessee’s opening balance lease liability

Recognize the components of a lessee’s opening balance right-of-use asset

Identify types of initial direct costs to be included in the lessee’s ROU asset calculation

Identify the appropriate lease term

Recognize the applicability of impairment under ASC 360 on ROU assets

Recognize a lessor’s options regarding the recognition of lease and non-lease components

Identify ASC 842 implications to lessors relative to ASC 840

Identify those types of leases recognized by lessors under ASC 842

Recognize the implications of a sales-type lease to a lessor’s income statement and balance sheet