Description:
The purpose of this course is to review the changes made to lease accounting by ASU 2016-02, Leases, (as further amended by ASU 2018-01, Land Easement- Practical Expedient for Transition to Topic 842, and numerous other amendments), and to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Topics include a review of the new rules for lessees and lessors, the types of leases, how to account for the balance sheet, income statement and cash flows statement impacts of different types of leases, the implementation requirements, and more.

Delivery Method: Online Interactive Self Study

Level: Overview

Prerequisites: None

Advanced Preparation: None

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Author: Steven C. Fustolo

Category: Accounting and Auditing

Field of Study: Accounting

Passing Score: 70%

Publication Date: 01/27/2020

Technical Details:

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Objectives:
Recognize a key change made to GAAP by the new lease standard
Identify a type of lease that exists for a lessee under ASU 2016-02
Recall a type of lease for which the ASU 2016-02 rules do not apply
Recognize some of the criteria that determine whether a contract is or is not a lease
Identify some of the types of economic benefits a lessee can obtain from a leased asset
Recognize a right that ASU 2016-02 states does not prevent a lessee from having the right to direct use of an identified asset
Identify a threshold for a lease term to be considered a major part of an asset's remaining economic life
Recognize who an entity might not want to use the risk-free rate to compute the present value of lease payments
Identify how a lessee should account for initial direct costs
Recognize items that are and are not components of a lease term
Recall the method a lessee should use to record interest expense on a lease obligation

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NASBA: Yes

QAS: Yes

CPA: Suitable for all CPAs

IRS: No IRS credit for Enrolled Agents.