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 types of leases falling outside the scope of new ASC Topic 842

Identify the parameters available to lessees for nonrecognition of short-term leases

Identify the role of a lessee’s capitalization threshold in nonrecogition of certain leases

Recognize the role of lessee renewal or termination options when determining the lease term

Recognize the overall effect of the New Standard on lessees’ balance sheets

Identify the conditions applicable to a lessee’s classification of a lease as a financing lease, a sales-type lease or an operating lease

Identify the role of residual values when measuring a lessee’s lease liability

Identify the model under which the guidance of ASC Topic 842 is based

Recognize those leases for which a lessee will generally recognize a right-of-use asset and a lease liability

Identify the circumstances under which a lease liability should be remeasured

Identify the characteristics distinguishing between a lessor’s sales-type lease, direct-financing lease and operating lease

Identify a lessor’s accounting for a sales-type lease where lessee payments are probable

Recognize under what method a lessor accounts for operating lease income

Recognize the role of initial direct cost in determining a lessee’s ROU asset

Identify the overall effect to lessees that choose to apply all of the practical expedients of transitioning to ASC Topic 842

Recognize the characteristics of a lease contract

Recognize the characteristics of a lessee’s right to control the underlying asset in a lease contract

Recognize the basis on which consideration is allocated to lease components

Identify the major differences between US GAAP and IFRS lease standards

Identify the financial statement presentation of a lessee’s lease arrangements

Identify the accounting implications of lease modifications

Recognize factors influencing a lessee’s decision to exercise a purchase option or lease term option

Identify the categories of leasing arrangements from the lessor’s perspective

Identify the characteristics of leasing arrangements from the lessor’s perspective

Recognize the accounting implications of a lease modification to the lessor

Identify the financial statement presentation of leasing arrangements in the lessor’s financial statements

Recognize the FASB’s delayed accounting standard effective date for private companies due to concerns over the COVID-19 virus

Recognize the potential impact of the COVID-19 virus on accounting for leases under the New Standard
 

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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