The New Lease Accounting Standard (Topic 842) is now effective for nonpublic companies.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
To provide accountants in nonpublic companies with guidance for implementing the New Lease Accounting Standard and an understanding of its many complexities.
- 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 nonlease 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