Lease Accounting Fundamentals - ASC Topic 842
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Brief Introduction
This course provides a basic understanding of the new lease accounting rules (ASC Topic 842).Description
This course provides a basic understanding of the new lease accounting rules pursuant to Accounting Standards Codification (ASC) Topic 842, Leases, issued in February 2016. ASC 842 makes substantial changes to the accounting for leases, primarily for the Lessee.
A lease conveys the right to the Lessee to control the use of the identified property, plant, or equipment for a period of time in exchange for consideration to the Lessor. For the Lessee, leases are either Finance leases or Operating leases. The Lessee will record a right of use asset and lease liability for all leases with a term greater than one year. A Finance lease must meet one of five requirements, four of which are similar to prior capital lease accounting. If a lease is not a Finance lease, it’s an Operating lease. Most leases of equipment will be Finance leases and space leases will be Operating leases. For the Lessor, a lease is either an Operating lease, Direct Financing lease or Sales-Type lease. In general, the accounting for the Lessor has not changed substantially from the prior rules.
Accounting for leases from both the Lessee's and Lessor's perspective will be analyzed as well as lease straight lining, advantages and disadvantages of leasing, financial statement disclosure and the financial impact of the new rules.
If you would like Continuing Education Credit (e.g. CPE, CE, CPD, etc.) for this course, it is available if you take this course on the Illumeo dot com platform under course title: Lease Accounting 101. Illumeo is certified to provide CPE in over two dozen different professional certifications covering finance, accounting, treasury, internal audit, HR, and more. However, in order to receive CPE credit the courses must be taken on an ‘approved-by-the-governing-body’ CPE platform, and for over two dozen corporate professional certifications, that is the Illumeo platform. Go to Illumeo dot com to learn more.
Requirements
- Requirements
- Prerequisite: Basic proficiency in US GAAP accounting.
Illumeo Learning
3.4 Raiting
Lease Accounting Fundamentals - ASC Topic 842
- 3.4
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This course provides a basic understanding of the new lease accounting rules (ASC Topic 842). ASC 842 makes substantial changes to the accounting for leases, primarily for the Lessee....
Analysis of ASC 842
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A basic introduction to the new lease accounting standard (ASC Topic 842) This course provides a basic understanding of the new leases standard, issued by FASB in February 2016....
