Implementing the New Lease Accounting Standard for Nonpublic Companies: A Hands-On Workshop Self-Study Webinar (11 Hours)

Overview: 

Nonpublic companies are expected to implement the New Lease Accounting Standard (Topic 842) by January 1, 2021. This complex standard requires new and existing leases to be adjusted for the balance sheet. Through this informative, self-study webinar, you’ll gain a thorough understanding of the mechanics of lease implementation and explore:

  • Detailed rules and entries for finance and operating leases
  • Key assumptions needed for implementing Topic 842
  • Disclosure examples for initial application
  • Best transition options for your company
  • A complete lease analysis example
Objective: 

To provide accountants in nonpublic companies with guidance for implementing the New Lease Accounting Standard and an understanding of its many complexities.

Emphasis: 
  • Accounting rules and entries for both finance and operating leases
  • Adjusting existing operating leases for inclusion in the balance sheet
  • Documenting the lease capitalization process
  • Key assumptions that must be made by the lessee to implement Topic 842
  • Determining whether to use lease software for accounting
  • Disclosure examples for the initial application of the Standard
  • Optimal transition options for your company
  • Work through a complete lease analysis

Identify the recommended characteristics of the lease implementation team leader

Identify the overall perspective of implementing the lease stand from the perspective of those companies who have completed the implementation

Recognize the role of dedicated and specialized leasing software in the implementation process

Recognize the constraints of use of the package of practical expedients

Recognize the role of professional judgment in implementing the standard

Identify the components of a lease contract

Identify the significance of a lessor’s right of substitution within the lease contract

Identify all conditions under which a lessee may not be required to capitalize leases

Identify the how lessee’s finance lease payments are to be shown in the income statements

Recognize a lessee’s finance lease payments are to be shown in the statement of cash flows

Recognize the effect of finance leases on EBITDA relative to operating leases

Recognize the treatment of lease expense increases under variable leases

Recognize the accounting result of a lessor granting a lessee of an existing lease contract an additional right-of-use asset based on a standalone price

Recognize the accounting result of a lease that does not result in a separate new lease

Recognize the appropriate discount rate to be used to determine a revised lease liability measurement upon a lease modification

Recognize the overall effect the discount rate has on the ROU asset and lease liability balance

Identify the constraints on the use of the risk-free discount

Identify the lessee’s accounting for residual value guarantees

Identify a lessee’s accounting for insurance, real estate taxes, and CAM charges

Identify the lessee’s accounting for variable rent

Identify some of the known challenges in implementing ASC 842

Identify the accounting result of separating lease and non-lease components of a lease

Identify the effect of the lessee’s discount rate on the opening ROU asset and lease liability

Identify the role of documentation in the implementation of the standard

Recognize the role of the outside auditors in the implementation of the standard

Recognize the latest actions of the FASB on private company implementation deadlines due to the COVID-19 pandemic

Recognize the options available under the various practical expedients

 

Bottom
Price: 
$399.00
Prerequisite: 

Basic knowledge of financial accounting and reporting.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Intermediate.

CPE Credit: 
11.00
NASBA Field of Study: 
Accounting