This course will teach you how to apply the new FASB standard on lease accounting in a practical manner with examples.
What’s in the scope? What are the requirements?
The new FASB ASC 842 standard will require businesses to change their accounting and reporting methods.
This course gives an overview of the most critical aspects, including Identification; recognition (which means which assets should be recorded); measurement(what does it mean when you say " measuring lease duration?").
This course aims to answer all your questions about what the standard requires and how to apply it.
You'll learn the core principles, including Identification, who should recognize it (and for what), and how measurements are made.
In addition, there's an examination of presentation requirements, including when/how these entries must occur throughout different stages during ownership.
Additionally, this course explains:
- The lessee accounting model, including lease classification, amortization of the right-of-use asset, and interest on the lease liability
- The lessor accounting model, including transfer of risk, profit recognition, and collectibility
- Short-term leases, purchase options, variable lease payments, and sale and leaseback transactions
- The business context of implementing the new standard by identifying key factors for managing this significant change.
Course info
Duration - 10 hours. Upon completion you get 10 CPE credits
Course provider - AICPA
Prerequisites - Experience in application of accounting standard
Access - Online for one year from date of access
Key Topics
- Lease classification
- Amortization of the lease asset
- Derecognition of the underlying asset
- Recognition of lease receivables
- Sale and leaseback transactions
- Private company considerations
- Short-term leases
- Purchase options
- Variable lease payments
Learning Outcomes
- Recognize arrangements that meet the scope requirements for lease accounting under FASB ASC 842.
- Recognize lessee accounting requirements for operating leases and finance leases under FASB ASC 842.
- Recognize lessor accounting requirements for sales type, direct financing, and operating leases under FASB ASC 842.
- Recognize accounting requirements for lease modifications under FASB ASC 842.
- Recognize accounting requirements for sale and leaseback transactions under FASB ASC 842.
- Recognize presentation requirements for lessees and lessors under FASB ASC 842.
- Recognize business factors to consider when implementing FASB ASC 842.