This course provides an in-depth overview of the lease accounting standards issued by the Financial Accounting Standards Board (FASB) in February 2016. This includes a discussion of the primary reasons for the change as well as how to identify a lease within a contract. This course also provides an in-depth review of lease classification, initial measurement, subsequent measurement, presentation & disclosure, as well as transition requirements. The course concludes with a discussion of some of the significant differences between IFRS 16(the IASB's lease accounting standard) as well as private company considerations.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize how the 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 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 the 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
The Final Revised Standard
Right to Control Use of the Asset
Illustrative Examples
Lessee Lease Classification
Operating Leases
Lease vs. Nonlease Components
Lessor Accounting
Lease Modifications
Sale and Leaseback Transactions
Assets under Construction
Transition Requirements
IFRS Differences
Private Company Considerations
