3.0 CPE 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:
https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/leases/leases__4_US/lg_pdf.html
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: January 13, 2023
Included In Certifications
This course is included in the following Certification Programs:
18 CoursesThe Controllership Series Certification
- The Controllership Series: The Controller Function - Elevating the Role
- The Controllership Series: The Controller Function - Strategic and Annual Planning
- GAAP Principles, Assumptions and Considerations
- The Treasury Function Part 1: Cash, Liquidity and Investments
- The Controllership Series: The Controller Function - Cash and Investments
- ASC 842 Accounting for Leases - Deep Dive
- Revenue Recognition (ASC Topic 606) Standard Overview
- The Controllership Series: The Controller Function - Inventory Part 1
- The Controllership Series: The Controller Function - Inventory Part 2 - Inventory Valuation, Physical Inventory Methods and Inventory fraud
- The Controllership Series: Overhead, Direct and Indirect Costs and Allocation Methods
- The Controllership Series: Financial Statement Preparation and Presentation
- Analyzing Financial Ratios - Leverage
- Analyzing Financial Ratios - Performance And Efficiency
- The Controllership Series: The Controllers Role in Data Analytics and Big Data
- The Controllership Series: The Financial Close Process
- The Controllership Series: Managerial Accounting Basics and Cost Principles
- The Controllership Series: Sales, Collections and Customer Credit
- Tools for The Controllership Series Certificate
56 Reviews (271 ratings)
Reviews
Anonymous
(Consultant)
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.
Michael Izzo
(Accounting Manager at Stream.io, INC.)
Outstanding overview of ASC 842 - my understanding of this topic has increased dramatically. Worth every minute.
John Vardavas
( at Vardavas, CPA)
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.
Anonymous
(Controller)
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.
Anonymous
(disabled)
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.
Molly Stockton
( at Self)
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.
Jennifer Saghir
(Controller at Greenlight Guru)
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.
Neal Stiles
(Finance Director at Contractor)
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
(Revenue Accountant)
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.
Jeffrey Looby
(Corporate Development at Gordon Brothers Group, LLC)
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.
Anonymous
(General Accounting)
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
()
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.
Anonymous
(Associate Director)
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
(Director)
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).
GREG HALL
(Adjunct Professor at University of Iowa)
Lots of details to determine the proper classification and subsequent accounting for leases. Appendices provide great examples to extend the learning.
Anonymous
()
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
(Director of Finance)
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.
Jatin Talreja
(Financial Accounting Consultant at Wells Fargo)
The course content especially PWC guide & journal of accountancy examples were very helpful in understanding accounting treatment of leases.
Anonymous
(Accounting Manager)
The instructor reads from slides making it pretty dry. A lot of grammatical errors throughout. Overall information on the topic is adequate.
Anonymous
(Senior Accountant)
Overview of the new lease standard changes, a good refresher, but more structure/conciseness in concepts may do the overview better service.
Debbie Banks
( at Banks Accountancy LLC)
Instructor mostly read from the slides. There were some real life examples, but I believe more would make the information sink in better.
Anonymous
(Accountant)
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.
Anonymous
(Accountant)
This course is a detailed overview about leases. Good examples provided. Very good slides to always come back to review them.
Anonymous
()
Great course explaining a complex topic. I've already used the slides from this course for reference in work with clients.
Nicholas Pierce
( at self)
this information was new to me (although I had hears some about it) and thought it was presented in a very thorough manner
Anonymous
()
This course provided a very good introduction into the new lease accounting standard and also provided relevant examples.
Anonymous
()
Excellent explanation of a very difficult topic. Talking points are spot on, easy to understand the underlying concepts.
Anonymous
(Accountant)
Thank you for the deep dive on ASC 842. This presentation was very educational and the supporting material is helpful!
Anonymous
(Sr. Accountant)
It is a complex topic to cover in a CPE course but very helpful for real world use. Good instruction overall.
Anonymous
(Principal)
the material was clear and organized and the instructor provided good examples to make it all understandable
Jeremy Wheeler
(Partner at CNM LLP)
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Anonymous
(Controller)
There are several items to know and understand ASC 842, this is a good overview of the accounting topic.
Anonymous
(Accounting Director)
The instructor did a nice job of providing enough details to understand very technical subject matter.
Mark Eason
( at BVUA)
It would be very helpful if the PDF would have page numbers. I am having to write in the page numbers.
Kim Reif
(Business Manager at Revolo Biotherapeutics)
The course was very well paced and the content was clearly laid out in the slides and by the presentor.
Anonymous
()
Great information on the Accounting Standard for leases ASC 842. Learned alot that I didnt know before
Michael DeVito
( at Dassualt Falcon Jet)
Great course on a forefront accounting topic. A must for anyone accounting for their company leases.
James Shelton
( at CPA)
Good content on the implications of the new lease standard and how to properly implement ASC842.
Anonymous
(Assistant Controller)
Very informative course. I would suggest to provide more examples along with journal entries.
William Barnes
(VP Corporate Controller at In transition)
Very thorough; some minor edits need to be made to materials, appendices are very useful.
Corey Gibb
( at UC Law SF)
The instructor clearly articulated the material and the supporting files were helpful.
Brian Meister
(- at International Hillel)
Great course. Directly applicable to what i'm doing at my job. really appreciate it!
Anonymous
(Consultant)
Good overview of the detail of new guidance. The appendices were good for examples.
Anonymous
(Senior Lean Development Officer)
Good overview of leases, BS and reporting requirements for both lesees and lessors
Anonymous
(Partner)
Great course, would highly recommend if you are responsible for lease accounting.
Anonymous
(Accounting Manager)
Very detailed and clear presentation of a complex area.
Slides are helpful.
Anonymous
()
This was a very helpful overview of the changes from 840 to 842. Thank you.
Anonymous
(Accountant)
Great course, clear and concise, would recommend others to take this course
Syed Kazmi
(Controller at Encompass Capital Advisors LLC)
Comprehensive discussion on the subject but still needs some explanation.
Anonymous
()
Course was informative and will help during implementation of this topic.
Anonymous
(Senior Accountant)
I would recommend this course to any CPA working on their CPE credits.
Anonymous
()
I feel like this is a very important course to take. Glad I took it!
Anonymous
(Accountant)
very effective and highly apprecieated summary of lease accounting
Anonymous
(Senior Revenue Manager)
I enjoyed this course very much, and I found it very informative.
Anonymous
(Consultant)
Tough subject but great course for learning the material.
Anonymous
(Director)
Great topic - very relevant in today's accounting world.
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
.
Lynn FountainCPA, CGMA, CRMA, MBA, Consultant, Author, Trainer
About Illumeo
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