What you need to know about the lessee and lessor accounting models This course explains the lessee accounting model, including
Lease and non-lease components
Lease classification
Amortization of the right-of-use asset
Interest on the lease liability
This course also explains the lessor accounting model, including
Transfer of risk
Profit recognition
Collectibility
Included in this course are detailed and illustrated examples with amortization tables and journal entries.
Learning Objectives
- 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.
Major Topics
Lessee and lessor accounting models
Lease and non-lease components
Lease classifications
Initial and subsequent measurement of leases
