Lease Accounting New Standard (ASC 842): An Expert’s Guide to Implementation Self-Study Webinar (10 Hours)

Overview: 

ASC Topic 842 will substantially alter how companies account for leases in their financial statements. This self-study webinar will prepare you for the financial reporting challenges that the new guidance will impose on all financial statement preparers. Specifically, you will:

  • Learn best practices for transitioning to the new rules
  • Review sample journal entries
  • Discover new disclosure requirements for lessees and lessors
  • Examine the accounting for sale/leaseback transactions
  • Explore the impact of the new rules on financial reporting of income taxes and leases acquired in a business combination
Objective: 

To give financial professionals a comprehensive understanding of the changes that the new pronouncement (ASC Topic 842) will make to the current accounting rules for leases. You’ll examine how the new rules will impact your financial statements, and you’ll gain practical guidance on how to apply the new rules to your company’s reporting situation.

Emphasis: 
  • In-depth analysis of the new pronouncement with numerous illustrative examples
  • Scope, exceptions and exclusions
  • Definition of a lease
  • Lease vs. service arrangements
  • Identifying lease components
  • Allocation of consideration between lease and non-lease components
  • Impact to lessees
    – Identifying the lease term
    – Accounting for lessee option incentives
    – Determining lease payments: fixed and variable
    – Lease classification: finance and operating
    – Accounting for lease modifications
    – Case study
  • Impact to lessors
    – Determining the lease term and payments
    – Classification: sales-type leases, direct financing and operating leases
    – Case study
  • Lessee and lessor disclosures
  • Impact on financial reporting of income taxes required by ASC Topic 740
  • Accounting for sale/leaseback transactions
  • Accounting for leases acquired in a business combination
  • Significant differences with IFRS

Recognize the conditions leading to a lessee’s classification of a lease as a financing lease

Identify the model under which the new guidance is based

Identify the circumstances necessitating the remeasurement of a lease liability

Identify the primary rules of ASC Topic 840

Recognize the lease characteristics of a lessee’s financing lease

Recognize the lessee’s accounting for both an operating and a financing lease

Recognize the circumstances in which a lease modification will require the recognition of a new lease

Identify the accounting implications of a lease modification to a lessee

Identify the rules for transitioning to the new lease standard

Identify the transitioning practical expedients available to lessees

Recognize the differences between ASC Topic 842 and IFRS 16

Recognize the characteristics of a lease

Recognize the circumstances under which periods subject to lessee renewal or termination options would be included in the lease

Recognize the basis for the allocation of consideration to lease components

Identify lease components unique to real estate leases

Identify the circumstances under which lease terms are reassessed

Identify the costs included in the calculation of the right-of-use asset

Identify the amortization method used by the lessee to amortize the right-of-use asset in both a financing lease and an operating lease

Recognize the treatment of finance lease payments and operating lease payments in the statement of cash flows of a lessee

Recognize the method used by the lessor when accounting for operating lease income

Recognize the accounting implications of a lease modification to a lessor

Recognize the treatment of lease payments in the statement of cash flows of a lessor

Identify the lease accounting implications of a business combination

Identify the lease accounting implications of a sale and leaseback transaction

Bottom
Price: 
$399.00
Prerequisite: 

Basic knowledge of financial accounting and reporting.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Intermediate.

CPE Credit: 
10.00
NASBA Field of Study: 
Accounting