Overview
This self-study webinar session from our Lease Accounting Conference will show you how to identify lease and non-lease components and how to handle them under the New Lease Accounting Standard.
AGENDA HIGHLIGHTS
• Four Steps in Separating Components of a Contract
– Identify separate lease components
– Identify non-lease components
– Measure consideration in the contract under ASC 842
– Allocate considerations between components using observable data
• Measuring Considerations in the Contract
– Lease payments
– Fixed
– Variable
– Purchase option
– SPE payments
– Residual value guarantee
– Consideration in contract (lessors)
• Allocating Consideration in a Contract
– Lessees and lessors
– Variable payments and CAM
• Practical Expedients
• Additional Examples
LEARNING OBJECTIVE To ensure that financial professionals will be able to identify and separate lease and non-lease components
under the New Lease Accounting Standard.
PREREQUISITE None. ADVANCE PREPARATION None. PROGRAM LEVEL Update. NASBA FIELD OF STUDY Accounting.
DELIVERY METHOD Self-Study.
Speakers
SPEAKER
Sallie Nold, VP of Accounting Policy, Bank of America
Detailed Learning Objectives
• Identify the ramifications of a service arrangement embedded within a lease contract
• Recognize the circumstances under which an entity must consider the right to use an underlying asset as a separate lease component
• Recognize the accounting treatment of the right-to-use land
• Identify lease components, non-lease components and activities in a contract that do not transfer a separate good or service
• Identify the methodology for which a lessor and lessee are to allocate consideration to lease components