The introduction of the new lease accounting standards by the Financial Accounting Standards Board (FASB) in 2016 has brought significant changes and challenges in lease accounting practices. This course offers a comprehensive solution to navigate these complexities. It provides a detailed overview of the reasons behind the changes, the process of identifying leases within contracts, and the intricate nuances of lease classification, initial and subsequent measurement, as well as presentation and disclosure requirements. The course also delves into the transition requirements and discusses the critical differences between IFRS 16 and the FASB's standards, along with specific considerations for private companies. By demystifying the new leasing standards, this course equips participants with the expertise to adapt and comply with these changes, ensuring accurate and efficient lease accounting in line with the latest regulations.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize how the new leasing standard has evolved and how the new standard is organized
Determine whether an arrangement contains a lease
Identify considerations with respect to substitution rights and decision-making rights
Identify the criteria for the new finance lease and short-term leases
Recognize the new recognition and measurement requirements for both lessees and lessors
Identify the recognition criteria for sales-type, direct financing, and operating leases
Identify the overall requirements with respect to lease modifications
Identify criteria used for sale and leaseback transactions
Identify the considerations with respect to a lessee's involvement in construction of a leased asset
Identify the presentation requirements for both lessees and lessors
Recognize both qualitative and quantitative disclosure requirements for both lessees and lessors
Identify the effective date for the new lease accounting standards
Identify the significant differences between ASC 842 and IFRS 16
Recognize considerations of and alternatives provided to private companies
Major Topics
Lease Accounting Standards
Recognition and Management
Modifications
Assets Under Construction
