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



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 how leases are classified, implications of the new guidance, and the impact of COVID-19 on implementation and impairment of financial assets.


•  Lease Scope

•  Evolution of the Leasing Standard

•  Tomorrow’s ASC 842 Requirements
    – Lessee Model
      – Initial and subsequent measurements
      – Lease obligations and ROU assets

•  Differences Between ASCs 840 & 842

• Lease Classification Criteria

•  Initial Direct Costs

•  Recognition & Measurement for Operating & Finance Leases

•  Finance, Capital & Operating Leases

•  Lease Payments
   – Fixed
   – Variable
   – Residual value guarantees
   – Purchase and termination options

•  Lease Term
   – Initial determination and reassessment

•  Discount Rates (Lessee & Lessor)
   – Secured vs. unsecured
   – Incremental Borrowing Rate (IBR)

•  ASC 360 Impairment & ASC 420 Liabilities

•  Understanding the Implications of the Guidance
    – Separating lease and non-lease components
    – Evaluating renewal options and classification
    – Calculating ROU asset and lease liability

•  Short-Term Leases

•  Impact of COVID-19
    – Implementation challenges—New Leases Standard
       – Discount rate
       – Embedded leases
       – Lessee allocation of variable payments
       – Interaction of ASC 842 and ASC 360
       – Impairment of financial assets

•  Lessor Considerations

•  Targeted Improvements (ASU 2018-11)
   – Lessor relief

•  Combining Lease & Non-Lease Components
   – Determining which component is predominant
   – Implications of lessor relief
   – Required disclosures for practical expedient

•  Lease Incentives

•  Portfolio Approach

•  Lessor Accounting Model
    – Sales-type
    – Direct financing
    – Operating
    – Commencement loss

•  Narrow Scope Improvements
    – Property taxes and insurance

•  Improvements to ASC 842 Addressed in ASU 2019-01
   – Cash flow statements involving sales and direct financing leases
   – Application of Fair Value to lessors that are not manufacturers or dealers


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




Erin Burke, Audit & Assurance Manager, Deloitte & Touche LLP

Shelley (Klee) Finn, Senior Principal/Director of Accounting Policies, DXC Technology

Mohamed Soliman, Senior Manager, Audit and Assurance, Deloitte

Detailed Learning Objectives

• Identify leases scoped out of ASC Topic 842

• Recognize the overall effect of the new leasing standard on lessees

• Recognize the COVID-related extended effective dates of the New Lease Accounting Standard

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

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

• Recognize examples of incremental initial direct costs

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

• Identify the appropriate lease term

• Identify the circumstances under which a lessee would reassess the lease term

• Recognize the common rate used by the lessee in measuring the lease liability

• Identify the implications of the discount rate on the lease liability balance

• Recognize the applicability of impairment under ASC 360 on ROU assets

• Recognize options regarding the recognition of lease and non-lease components

• Recognize the treatment of real estate taxes in a real estate leasing contract

• Identify the maximum lease term for which a lessee may elect to not recognize the lease on the balance sheet

• Identify options available to lessors regarding the allocation of contract consideration to both lease components and non-lease components

• Recognize a lessor’s disclosure obligations when utilizing the practical expedient to combine lease and non-lease components