The Bottom Line on the New Lease Accounting Requirements

Overview

Which leases are within the scope of FASB ASC 842, Leases, and what are the basic accounting, financial reporting, and disclosure requirements? This course addresses those questions by focusing on the basic core principles of this major standard. We clarify the essential topics such as the identification, recognition, measurement, presentation, and disclosure requirements for leases. You’ll learn to apply the standard by completing engaging case studies incorporated throughout the course. Additionally, you’ll explore the lessee accounting model, lease classification, amortization of the right-of-use asset, and the calculation of interest on the lease liability. You’ll also examine the accounting model for lessors and key considerations, such as profit recognition and the assessment of collectability.

Objectives

When you complete this course, you will be able to:

Recognize arrangements which meet the scope requirements for lease accounting under FASB ASC 842.

Recognize accounting requirements for lease modifications under FASB ASC 842.

Recognition presentation requirements for lessees and lessors under FASB ASC 842.

Identify the recognition criteria for sales-type, direct financing, and operating leases.

Highlights

Lease classification

Amortization of the leased asset

Derecognition of the underlying asset

Recognition of lease receivables

Lease modifications

Sale and leaseback transactions

Designed For

Accountants and finance professionals

Prerequisites

Experience in application of accounting standards

Preparation

None

Notice

By registering for this program and, accordingly, receiving the eMaterials, you’re acknowledging that you understand both the copyright restrictions on your eMaterials and the CTCPA cancellation policy.

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

Thomas Sheets

Leader Bios

Thomas Sheets

Thomas M. Sheets, CPA Tom Sheets is a Certified Public Accountant with over 35 years’ experience in auditing and tax return preparation for businesses and individuals. He established his own consulting, tax, and accounting practice 19 years ago in Enid, Oklahoma. He provides consulting, auditing, and tax planning and preparation services for a wide variety of individual clients and industries. Mr. Sheets started with a Big Eight accounting firm in Tulsa, Oklahoma and then was with a large, local CPA firm in Enid, Oklahoma for 15 years. He has written and led seminars for leading providers of CPE for over 29 years on various topics including real estate accounting, construction accounting and tax, fraud, bank auditing, tax issues for nonprofit organizations, compilation and review, cash and tax basis financial statements, and nonprofit accounting and auditing.

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