Leases: Mastering the New FASB Requirements

Overview

FASB ASC 842, Leases, standards decoded
By learning essential information about lease accounting requirements, you'll understand the core principles of the standards and how to apply them. You will explore topics, such as:

• Identification
• Recognition
• Measurement
• Presentation and disclosure requirements
  

Deliberate application of lessee accounting model
You will also learn about classifying leases, the amortization of the right-of-use asset, and the interest on a lease liability. Additional topics include:

• Short-term leases
• Purchase options
• Variable lease payments
• Sale and leaseback transactions
• Leveraged leases

Prerequisites

Experience in application of accounting standard

Objectives

• Recognize arrangements which meet the scope requirements for lease accounting under FASB ASC 842.
• 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.
• Recognize accounting requirements for lease modifications under FASB ASC 842.
• Recognize accounting requirements for sale and leaseback transactions under FASB ASC 842.
• Recognize presentation requirements for lessees and lessors under FASB ASC 842.

Highlights

Lease classification

Amortization of the lease asset

Derecognition of the underlying asset

Recognition of lease receivables

Lease modifications

Sale and leaseback transactions

Presentation and disclosure requirements