This course offers a comprehensive guide to the changes in lease accounting practices introduced by FASB's ASU 2016-02, Leases (ASC 842). It is designed to aid professionals in understanding and implementing the new standard, which significantly alters the way leases are accounted for on balance sheets. The course features detailed explanations of the financial accounting and reporting requirements for both lessees and lessors under ASC 842, highlighting the critical changes from the previous standard. Participants will benefit from specific examples that illustrate the application of these new requirements, enabling a clearer understanding of the standard's impact on financial statements. Additionally, the course covers the differences between U.S. GAAP and IFRS in lease accounting, providing a broader perspective. It also offers valuable insights into developing a leasing policy threshold, ensuring effective internal control over leases, and preparing for audits. This course is invaluable for professionals seeking to adapt to the new lease accounting standard and enhance their financial reporting accuracy and compliance.
Learning Objectives
Upon completion of this course, you will be able to:
Recognize the improvement over the lease accounting through the release of ASC 2016-02;
Cite the key changes in the leasing practice;
Identify the applicability of the lease standard;
Identify key concepts in lease accounting;
Recognize the difference between U.S. GAAP and IFRS affecting the lease accounting practice;
Identify the accounting rules for initial direct costs;
Recognize the methods of accounting for different types of leases by lessees and lessors; and
Identify risks and controls over leasing activities.
Major Topics
Fundamentals of Lease Accounting
The Application of the Lease Standard
Other Lease Matters
