Instructor for this course

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.

Note: This course is also a part of The Controllership Series.

This course utilizes concepts and information that can be found in the open source available document of PWC Lease guide that is available at this link:

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: Aug 04, 2021

Included In Certifications

This course is included in the following Certification Programs:

17 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. GAAP Principles, Assumptions and Considerations
  4. The Treasury Function Part 1: Cash, Liquidity and Investments
  5. The Controllership Series: The Controller Function - Cash and Investments
  6. ASC 842 Accounting for Leases - Deep Dive
  7. Revenue Recognition (ASC Topic 606) Standard Overview
  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. Analyzing Financial Ratios - Leverage
  13. Analyzing Financial Ratios - Performance And Efficiency
  14. Analyzing Financial Ratios - Solvency, Liquidity and Debt
  15. The Controllership Series: The Financial Close Process
  16. The Controllership Series: Managerial Accounting Basics and Cost Principles
  17. Tools for The Controllership Series Certificate

17 Reviews (99 ratings)Reviews

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.
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.
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
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.
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.
Member's Profile
The course content especially PWC guide & journal of accountancy examples were very helpful in understanding accounting treatment of leases.
Anonymous Author
The instructor reads from slides making it pretty dry. A lot of grammatical errors throughout. Overall information on the topic is adequate.
Anonymous Author
Overview of the new lease standard changes, a good refresher, but more structure/conciseness in concepts may do the overview better service.
Member's Profile
It would be very helpful if the PDF would have page numbers. I am having to write in the page numbers.
Anonymous Author
Great information on the Accounting Standard for leases ASC 842. Learned alot that I didnt know before
Anonymous Author
Very informative course. I would suggest to provide more examples along with journal entries.
Member's Profile
Very thorough; some minor edits need to be made to materials, appendices are very useful.
Anonymous Author
Good overview of the detail of new guidance. The appendices were good for examples.
Anonymous Author
Good overview of leases, BS and reporting requirements for both lesees and lessors
Member's Profile
Comprehensive discussion on the subject but still needs some explanation.
Anonymous Author
I enjoyed this course very much, and I found it very informative.
Anonymous Author
Great topic - very relevant in today's accounting world.


Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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 Syllabus
  5:40Introduction to ASC 842 Accounting for Leases
  14:14Understand the Updated Lease Standards
  10:54Lease Classification
  9:10Lease Classification Cont'd
  6:29Types of Leases for Lessees
  13:34Types of Leases for Lessors
  10:59Lease Classification Areas of Focus
  5:26Purchase Options, Discount Rate and Implicit Rate
  20:26Sales Leaseback Transactions
  7:00Financial Statement Disclosures
  13:17Appendix Part 1
  6:40Appendix Part 2
  2:10Appendix Part 3
  2:05:59ASC 842 Accounting for Leases - Deep Dive
  PDFSlides: ASC 842 Accounting for Leases - Deep Dive
  PDFASC 842 Accounting for Leases - Deep Dive Glossary/ Index