Lease Accounting

FASB ASC 842 has redefined accounting for leases. This two-day seminar will explain the requirements of the standard, its logic, its implications, and the problem areas that concern the preparers.

This course offers participants an understanding of the new standard and its complexities as well as how to apply it effectively in their organizations. The seminar goes beyond a mere description of the technical requirements by explaining the underlying concepts and their rationale via practical spreadsheets. The elimination of tedious computations frees up time to discuss practical implementation issues and how the standard affects interpretation of financial statements by users.

Agenda

Course Agenda

• Four ways to account for contractual commitments for assets that are depreciated
• Commitments that stay off the balance sheet
  • Contracts that are not leases
  • Short-term leases
• Commitments that are on the balance sheet
  • Operating leases
  • Finance leases
• Allocating consideration to lease and non-lease components
• Lease payments, discount rate, inception date, commencement date, lease term
• Impairments of right of use asset, modifications, subleases
• Sale-leaseback accounting, build-to-suit-leases, real estate leases
• Policy elections and disclosures
• Lessor accounting
  • Interaction with revenue recognition rules
  • Elimination of the distinction between real estate leases and other leases
  • Elimination of leveraged leases