Lease Accounting Under ASC 842: Practical Guidance for Lessees & Lessors Webinar

To give CPAs and other financial professionals a comprehensive understanding of the changes that the new pronouncement (ASC Topic 842) will make to the current accounting rules for leases. You’ll examine how the new rules will impact your financial statements, and you’ll gain practical guidance on how to apply the new rules to your company’s reporting situation.

• In-depth analysis of the new pronouncement with numerous illustrative examples
• Scope, exceptions and exclusions
• Definition of a lease
• Lease vs. service arrangements
• Identifying lease components
• Allocation of consideration between lease and non-lease components
• Impact to lessees
  – Identifying the lease term
  – Accounting for lessee option incentives
  – Determining lease payments: fixed and variable
  – Lease classification: finance and operating
  – Accounting for lease modifications
  – Case study
• Impact to lessors
  – Determining the lease term and payments
  – Classification: sales-type leases, direct financing and operating leases
  – Case study
• Lessee and lessor disclosures
• Impact on financial reporting of income taxes required by ASC Topic 740
• Accounting for sale/leaseback transactions
• Accounting for leases acquired in a business combination
• Significant differences with IFRS
• Common control arrangements

To give CPAs and other financial professionals a comprehensive understanding of the changes that the new pronouncement (ASC Topic 842) will make to the current accounting rules for leases. You’ll examine how the new rules will impact your financial statements, and you’ll gain practical guidance on how to apply the new rules to your company’s reporting situation.

DETAILED LEARNING OBJECTIVES

• Recognize the types of leases falling outside the scope of new ASC Topic 842

• Identify the parameters available to lessees for nonrecognition of short-term leases 

• Identify the role of a lessee’s capitalization threshold in nonrecogition of certain leases

• Recognize the role of lessee renewal or termination options when determining the lease term 

• Recognize the overall effect of the new standard on lessees’ balance sheets

• Identify the conditions applicable to a lessee’s classification of a lease as a financing lease, a sales-type lease or an operating lease

• Identify the role of residual values when measuring a lessee’s lease liability

• Identify the model under which the guidance of ASC Topic 842 is based 

• Recognize those leases for which a lessee will generally recognize a right-of-use asset and a lease liability 

• Identify the circumstances under which a lease liability should be remeasured

• Identify the characteristics distinguishing between a lessor’s sales-type lease, direct-financing lease and operating lease

• Identify a lessor’s accounting for a sales-type lease where lessee payments are probable

• Recognize under what method a lessor accounts for operating lease income 

• Recognize the role of initial direct cost in determining a lessee’s ROU asset

• Identify the overall effect to lessees that choose to apply all of the practical expedients of transitioning to ASC Topic 842

• Recognize the characteristics of a lease contract

• Recognize the characteristics of a lessee’s right to control the underlying asset in a lease contract

• Recognize the basis on which consideration is allocated to lease components

• Identify the major differences between US GAAP and IFRS lease standards

• Identify the financial statement presentation of a lessee’s lease arrangements

• Identify the accounting implications of lease modifications

• Recognize factors influencing a lessee’s decision to exercise a purchase option or lease term option 

• Identify the categories of leasing arrangements from the lessor’s perspective

• Identify the characteristics of leasing arrangements from the lessor’s perspective

• Recognize the accounting implications of a lease modification to the lessor

• Identify the financial statement presentation of leasing arrangements in the lessor’s financial statements

• Identify key internal controls for lease tracking and compliance

• Understand the role of automation in reducing lease accounting errors and improving efficiency

• Recognize the key changes introduced by ASU 2018-20, ASU 2019-01, ASU 2020-05, ASU 2021-05, ASU 2023-01, and their implications for lease reporting

• Identify how noncash lease payments should be measured and recorded

• Understand how ASC 740 applies to deferred tax assets (DTAs) and deferred tax liabilities (DTLs) arising from lease transactions

• In-depth analysis of the new pronouncement with numerous illustrative examples
• Scope, exceptions and exclusions
• Definition of a lease
• Lease vs. service arrangements
• Identifying lease components
• Allocation of consideration between lease and non-lease components
• Impact to lessees
  – Identifying the lease term
  – Accounting for lessee option incentives
  – Determining lease payments: fixed and variable
  – Lease classification: finance and operating
  – Accounting for lease modifications
  – Case study
• Impact to lessors
  – Determining the lease term and payments
  – Classification: sales-type leases, direct financing and operating leases
  – Case study
• Lessee and lessor disclosures
• Impact on financial reporting of income taxes required by ASC Topic 740
• Accounting for sale/leaseback transactions
• Accounting for leases acquired in a business combination
• Significant differences with IFRS
• Common control arrangements