In February 2016, FASB issued ASU 2016-02, Leases, which provides new guidelines that change the accounting for leasing arrangements. To be able to properly account for leases, financial professionals must understand ASU 2016-02 (also referred to as Topic 842). This guidance covers information on how leases should be accounted for. The previous leasing standard (ASC 840) had been in existence for almost 40 years.

Under ASC Topic 842, lessors continue to classify leases as operating, direct financing, or sales-type. While lessees now classify leases as operating or financing leases. Previous guidance only required capital leases to be reflected on the BS. The new guidance requires all leases to be reflected on the BS. This is a major change for organizations and will cause their BS to swell as leases must now be disclosed on the BS.

The standards original effective dates were prior to 2019. In April 2020, due to COVID-19, FASB voted to defer the effective date for ASC 842 for private companies and certain NFP’s for one year. For private companies and private NFPs, the leasing standard will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. For public companies the leasing standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

The course covers elements of lease classification for both lessees and lessors. Also, numerous examples are incorporated as reference.

Learning Objectives
  • Identify the purpose and effective date of the updated lease standard.
  • Recognize and understand the updated Topic 842 – Leases.
  • Identify the types/classifications of leases for lessees/lessors.
  • Explore how to account for a lessee’s operating and capital leases and required disclosures.
  • Identify how to account for a lessor’s operating, direct financing, sales-type leases and required disclosures.
  • Discover and understand Sale and leaseback issues.
Last updated/reviewed: August 28, 2023

Included In Certifications

This course is included in the following Certification Programs:

20 CoursesThe Controllership Series Certification

  1. The Controllership Series: The Controller Function - Elevating the Role
  2. The Controllership Series: The Controller Function - Strategic and Annual Planning
  3. The Controllership Series: The Controllers Role in Financial Forecasting
  4. The Controllership Series: Future Role of the Controller – Part 1
  5. The Controllership Series: Future Role of the Controller – Part 2
  6. The Controllership Series: The Controller Function - Cash and Investments
  7. ASC 842 Accounting for Leases - Deep Dive
  8. The Controllership Series: The Controller Function - Inventory Part 1
  9. The Controllership Series: The Controller Function - Inventory Part 2 - Inventory Valuation, Physical Inventory Methods and Inventory fraud
  10. The Controllership Series: Overhead, Direct and Indirect Costs and Allocation Methods
  11. The Controllership Series: Financial Statement Preparation and Presentation
  12. The Controllership Series: The Controllers Role in the Procurement Function
  13. The Controllership Series: The Role of The Controller in ESG
  14. The Controllership Series: The Controllers Role in Pro Forma Financials
  15. The Controllership Series: The Controllers Role in Data Analytics and Big Data
  16. The Controllership Series: Introduction to the Financial Close Process
  17. The Controllership Series: Managerial Accounting Basics and Cost Principles
  18. The Controllership Series: Sales, Collections and Customer Credit
  19. The Controllership Series: Addressing Cash Flow and Forecasting Uncertainty
  20. Tools for The Controllership Series Certificate
109 Reviews (534 ratings)

Reviews

5
Anonymous Author
Lynn did a good job with her explanation of the purpose of the new accounting standard, the core principle and requirement

4
Member's Profile
I recently had the pleasure of participating in an accounting course dedicated to ASC 842, and I must say that it exceeded all of my expectations. This course was an absolute game-changer for me, providing comprehensive and insightful knowledge about the new lease accounting standard. The instructors' expertise in the subject matter was evident from the very beginning. They effortlessly broke down the complex concepts of ASC 842 into easily digestible modules, making the content accessible to participants with various levels of accounting experience. Their passion for the topic was infectious, and it kept me engaged and motivated throughout the course. What truly stood out was the practical approach the course took. Rather than drowning us in theoretical jargon, the instructors focused on real-world scenarios and case studies. This allowed me to not only understand the principles of ASC 842 but also apply them confidently to actual lease accounting situations. The hands-on exercises and group discussions provided valuable opportunities to collaborate with fellow participants, fostering a dynamic learning environment. The course materials were exceptionally well-organized and up-to-date, which is crucial given the ever-evolving nature of accounting standards. The combination of video lectures, written guides, and interactive quizzes catered to different learning styles, ensuring that everyone could grasp the material effectively. I appreciated how the course also provided supplementary resources for further exploration, showing the dedication of the instructors to our success beyond the classroom. The instructors' commitment to supporting our learning journey was evident through their responsiveness to questions and their willingness to provide clarification whenever needed. This level of engagement truly made me feel valued as a participant and boosted my confidence in tackling the complexities of ASC 842. In the end, I can confidently say that this accounting course dedicated to ASC 842 was a fantastic investment in my professional development. It not only deepened my understanding of lease accounting but also equipped me with practical skills that I can apply directly in my role. If you're looking for a comprehensive, engaging, and well-structured course on ASC 842, I wholeheartedly recommend this one. It's an experience that will undoubtedly leave you empowered and excited about the world of lease accounting.

5
Member's Profile
The course was a "real" deep dive into a difficult topic. Since I have not worked with Leases, I was somewhat at a loss as to the impact of ASC 840 on ASC 842. I would have preferred more emphasis on the differences between ASC 840 and 842. As I reviewed for the final exam, I found the slides to be more beneficial than the continuous play of the course script. I found the narrator's voice distracting. I also found the organization of the course narrative somewhat confusing. I suggest reviewing the presentation materials as another look at a "less cluttered" presentation format. Finally, I would have enjoyed deeper insights by the narrator. Reading the slides is convenient but misses the point of having a narration that is additive to student understanding. I realize that time constraints have played a role in the development of the course. I appreciate the problem. Thank you David Beauregard

5
Anonymous Author
A great course on the new leasing standard. Covers all the basic concepts. The concepts are complicated and the instruction moves fast, but pausing the recording and reviewing the slides made it easier to follow. It also let you move faster through the concepts that were clear to you. I appreciated the way the course was designed.

5
Member's Profile
Thank you for well organized presentation to show each element of the different lease classification components and testing standards to both identify and record/classify on the balance sheet. This is a complex standard and notes/examples from this have further clarified work already done in practice to implement ASC 842.

5
Anonymous Author
Very thorough discussion of leases but is heavily based off what's already written in the slides. Some of the information does seem to get repeated (e.g. requirements for Finance Lease may have been covered three times). The examples of Finance/Operating Leases in the Appendix is one of the best parts.

4
Member's Profile
Lots of good info to be conveyed. Slides and tables were good. A lot of reading the slides (not so good). Good as a reference. Anyone in public - audit and accounting would benefit from this course. Comptrollers would also benefit. Examples are better concurrent with written explanations.

4
Anonymous Author
For those needing a deep dive, this is the course to take. Some slides are not very clear which adds a little confusion, however, the course's repetitive nature and the supporting appendices negate the lack of clarity. The material also serves as great resource while performing lease analysis.

5
Anonymous Author
this is a very informative course; it is well worth the time! I found the information very easy to follow and would recommend to anyone who wants to learn more about the subject matter! The professor does a great job on this course and also on additional courses that she teaches.

5
Anonymous Author
One of the best courses I have taken on the subject. The standard was broken down into digestible segments, and all the required information were presented really well. Saving the slides for ready reference. This is a benchmark of how a presentation should be. Good job !!

4
Member's Profile
A lot of subject matter covered within the course. The additional appendix, samples and source references included were helpful for further review. The comparisons from previous standard were helpful to highlight distinctions.

5
Member's Profile
I have watched a few different ASC 842 trainings/CPE courses and this one by far provided the most amount of relevant information. I actually feel like I have a handle on things now and have some great resources to utilize.

4
Member's Profile
Presentation of the PWC Lease Guide early on and then going into the specific details would have been advantageous as it would have allowed the details to be much more clear. Overall, a lot of information a presented well.

5
Anonymous Author
can be a more difficult area to review than some others due to the more complex nature of lease accunting. was well summarized in the training material and the inclusion of examples helps to illustrate the application

5
Anonymous Author
Firstly, I want to thank Mrs. Fountain for this awesome online training. This was very beneficial to me and relevant in my career field. It will help me enormously. I will definitely recommend this to my team.

5
Anonymous Author
This is a very thorough course that takes you through the leasing standards. This is a lot of information, so I definitely needed to go back through the slides myself to make sure I was following everything.

3
Member's Profile
I felt like the course explained the difference between the old standard and new standard well, however, it was a little bit scattered and hard to follow. However, I did appreciate the extra examples.

5
Anonymous Author
Like the structure and the level of detail, it's great to have examples to support the theories. The instructor is delivering in a very effective way. The course material is very easy to follow.

5
Member's Profile
Very thorough. I appreciated the consistent comparison to the old standard so that someone who learned the old standard can keep track of what is different - which mitigated confusion.

4
Anonymous Author
Good course, but a bit more explaining rather than reading the slides would have been helpful. Still I really enjoyed the instructor making this complex material easier to understand.

5
Anonymous Author
I thought I knew a fair bit about this topic, but this course showed me I had a lot to refresh on the Lessor rules, as my professional involvement has been mostly on the lessee.

5
Anonymous Author
The course was informative and the material was laid out in a very organized, simple manner. A great deal of material is covered, but is summarized well and is easy to digest.

3
Anonymous Author
It was a lot to follow and kind of hard to digest all at once. I understand it's a complicated subject, but I'm still not sure I entirely understand how to account for leases.

5
Anonymous Author
The course provides a great overview of the lease standard, a little more in-depth than other lease trainings. Recommended for anyone who is just starting to learn ASC 842

5
Anonymous Author
As always, Lynn Fountain breaks the topic down in a way that is relevant, practical and useful in real life, which is not always easy to find in technical CPE courses.

4
Anonymous Author
Overall, a good course. Would like to have seen subleases covered with an example. And there were some errors in the material (ex. je using the wrong $ amount).

5
Anonymous Author
This course material was complicated but the explanations are done well. The exam was a little long but there is also a lot of information to cover on this topic.

5
Anonymous Author
very complicated topic but instructor is well versed and presented examples etc that one can use as a guide for disclosures in financials and journal entries.

5
Anonymous Author
A lot of information, but definitely a good summary of leases and the similarities/changes between ASC 842 and ASC 840. Very helpful with the appendices.

5
Member's Profile
Lots of details to determine the proper classification and subsequent accounting for leases. Appendices provide great examples to extend the learning.

3
Anonymous Author
Good info, but just so much. Too much reading of slides. Quizes always seem to be easy and then the test are hard with multiple-multiple choice.

5
Anonymous Author
Lynn Fountain provides great examples and clear, thorough training throughout this course. The slides and link are great resources to have on-hand!

5
Member's Profile
Lots of information for a complicated topic. Very well organized and presented. I liked all the examples and summary of the information in tables.

5
Anonymous Author
Liked how thorough the review of ASC842 was by Ms Fountain. Best to be taken in conjunction with the text-based course from the same instructor.

3
Anonymous Author
It moved a bit slow - I would have liked to see more income statement Journal entries. Otherwise the content was really good as is the handout.

5
Member's Profile
Lynn did a fantastic job going through all of the details of all the changes that have come about with the new standard. Recommend to others.

5
Member's Profile
The course content especially PWC guide & journal of accountancy examples were very helpful in understanding accounting treatment of leases.

4
Anonymous Author
The instructor reads from slides making it pretty dry. A lot of grammatical errors throughout. Overall information on the topic is adequate.

4
Anonymous Author
Overview of the new lease standard changes, a good refresher, but more structure/conciseness in concepts may do the overview better service.

5
Anonymous Author
Very detailed course with great examples. This course helped me to better understand the classifications of leases and changes form ASC842.

3
Member's Profile
Instructor mostly read from the slides. There were some real life examples, but I believe more would make the information sink in better.

5
Anonymous Author
This was a great deep dive into ASC 842. I definitely recommend the course if you need a refresher or are learning for the first time.

5
Anonymous Author
There is a lot of content included in the class. I know I will refer back to the materials when dealing with leases in the future.

5
Anonymous Author
This course is a detailed overview about leases. Good examples provided. Very good slides to always come back to review them.

5
Anonymous Author
Great course explaining a complex topic. I've already used the slides from this course for reference in work with clients.

5
Member's Profile
this information was new to me (although I had hears some about it) and thought it was presented in a very thorough manner

5
Member's Profile
This is reasonably complex material, but Ms. Fountain does a good job of boiling it down allowing the user to understand.

4
Anonymous Author
This course provided a very good introduction into the new lease accounting standard and also provided relevant examples.

5
Anonymous Author
Excellent explanation of a very difficult topic. Talking points are spot on, easy to understand the underlying concepts.

5
Anonymous Author
This was a very informative courses on ASC 842. Some of the questions in the exam were worded in a confusing way though.

5
Anonymous Author
Thank you for the deep dive on ASC 842. This presentation was very educational and the supporting material is helpful!

5
Anonymous Author
TRICKY PRONOUNCMENT...BUT A GOOD CLASS! LYNN DOES A GREAT JOB HERE IN BRINGING THE HARD HITTING FACTS ON THIS COURSE.

5
Anonymous Author
Great, detailed course on the new lease standard. I would recommend to someone who has a lot of lease transactions.

5
Member's Profile
Outstanding overview of ASC 842 - my understanding of this topic has increased dramatically. Worth every minute.

4
Anonymous Author
It is a complex topic to cover in a CPE course but very helpful for real world use. Good instruction overall.

4
Anonymous Author
the material was clear and organized and the instructor provided good examples to make it all understandable

5
Anonymous Author
Great course content and well-laid out presentation. Course does a good job of explaining a complex topic.

5
Member's Profile
n/a.......................................................................................................

5
Anonymous Author
Well done. The instructor has brought out in great details the new ASC 842 standards on lease accounting.

5
Anonymous Author
There are several items to know and understand ASC 842, this is a good overview of the accounting topic.

5
Anonymous Author
The instructor did a nice job of providing enough details to understand very technical subject matter.

5
Member's Profile
I oversee our ASC 842 application at work and thought this presentation was very informative and useful!

4
Member's Profile
It would be very helpful if the PDF would have page numbers. I am having to write in the page numbers.

5
Member's Profile
The course was very well paced and the content was clearly laid out in the slides and by the presentor.

5
Member's Profile
Very good course and liked the content. Leases are very complicated and this course made it very clear.

4
Anonymous Author
Very informative and good discussion. I would take another course from this instructor, very detailed.

5
Anonymous Author
Great information on the Accounting Standard for leases ASC 842. Learned alot that I didnt know before

4
Member's Profile
Great course on a forefront accounting topic. A must for anyone accounting for their company leases.

4
Member's Profile
Enjoyed this course. Will be a good resource to reference when deciding how to treat our leases.

4
Member's Profile
Good content on the implications of the new lease standard and how to properly implement ASC842.

5
Member's Profile
Very good deep dive of the major components of 842. Definitely clarified many concepts for me.

4
Anonymous Author
Very informative course. I would suggest to provide more examples along with journal entries.

5
Member's Profile
Very thorough; some minor edits need to be made to materials, appendices are very useful.

5
Anonymous Author
Really enjoyed this! Leases are always a tricky topic, but this was explained very well!

4
Anonymous Author
I found the program informational. Provides interesting insights into the process flow

5
Anonymous Author
Excellent review of the ASC 842 pronouncement. Will recommend to my fellow coworkers.

5
Anonymous Author
Useful and very detailed explanation of Topic 842 despite how challenging the topic is.

5
Member's Profile
Great curse with very helpful learning materilal to understand the new lease standards

5
Member's Profile
The instructor clearly articulated the material and the supporting files were helpful.

5
Anonymous Author
Great course. Needed a refresher on ASC842. It's been awhile since involved with them

5
Member's Profile
Great course. Directly applicable to what i'm doing at my job. really appreciate it!

5
Anonymous Author
Good overview of the detail of new guidance. The appendices were good for examples.

5
Anonymous Author
A very thorough and comprehensive review of the 842 lease accounting requirements.

4
Anonymous Author
Good overview of leases, BS and reporting requirements for both lesees and lessors

5
Anonymous Author
Great course, would highly recommend if you are responsible for lease accounting.

5
Member's Profile
Very detailed slides and examples to give a strong discussion on leases ASC 842.

5
Anonymous Author
Very detailed and clear presentation of a complex area. Slides are helpful.

4
Anonymous Author
This was a very helpful overview of the changes from 840 to 842. Thank you.

5
Anonymous Author
Great course, clear and concise, would recommend others to take this course

5
Anonymous Author
Comprehensive refresher on the leases standard, inclusive of good examples.

4
Member's Profile
Comprehensive discussion on the subject but still needs some explanation.

5
Anonymous Author
Course was informative and will help during implementation of this topic.

5
Anonymous Author
I would recommend this course to any CPA working on their CPE credits.

5
Anonymous Author
This is a Indepth class which provides great details of ASC842 rules.

5
Anonymous Author
I feel like this is a very important course to take. Glad I took it!

5
Member's Profile
great material and instruction with great examples and explanations.

4
Anonymous Author
very effective and highly apprecieated summary of lease accounting

5
Anonymous Author
I enjoyed this course very much, and I found it very informative.

5
Anonymous Author
The subject material was presented in a clear and concise manner.

5
Anonymous Author
A great, comprehensive introduction to the intricacies of ASC842.

5
Anonymous Author
Meaningful and informative for auditors especially on a new topic

5
Anonymous Author
Great refresher course on leases! I would highly recommend!

5
Anonymous Author
Great summary of how to identify different types of leases.

5
Anonymous Author
Tough subject but great course for learning the material.

5
Anonymous Author
Great presentation, well organized and clearly presented.

4
Anonymous Author
Great topic - very relevant in today's accounting world.

5
Anonymous Author
Excellent course with relevant examples and case studies.

5
Member's Profile
Very well done. Extremely technical but well done.

5
Anonymous Author
Excellent information presented in understandable way

Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Questions and Answers1 Question
User picture
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to ASC 842 Accounting for Leases5:40
  Understand the Updated Lease Standards14:14
  Lease Classification10:54
  Lease Classification Cont'd9:10
  Types of Leases for Lessees6:29
  Types of Leases for Lessors13:34
  Lease Classification Areas of Focus10:59
  Purchase Options, Discount Rate and Implicit Rate5:26
  Sales Leaseback Transactions20:26
  Financial Statement Disclosures7:00
APPENDIX
  Appendix Part 113:17
  Appendix Part 26:40
  Appendix Part 32:10
CONTINUOUS PLAY
  ASC 842 Accounting for Leases - Deep Dive2:05:59
SUPPORTING MATERIAL
  Slides: ASC 842 Accounting for Leases - Deep DivePDF
  ASC 842 Accounting for Leases - Deep Dive Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam