Instructor for this course

This course provides an in-depth overview of the new lease accounting standards issued by the Financial Accounting Standards Board (FASB) in February 2016. This includes a discussion of the primary reasons for the change as well as how to identify a lease within a contract.

This course also provides an in-depth review of lease classification, initial measurement, subsequent measurement, presentation & disclosure, as well as transition requirements. The course concludes with a discussion of some of the significant differences between IFRS 16 (the IASB’s new lease accounting standard) as well as private company considerations.

Learning Objectives

  • Recognize how the new leasing standard has evolved and how the new standard is organized.
  • Discover and determine whether an arrangement contains a lease.
  • Identify considerations with respect to substitution rights and decision-making rights.
  • Identify the criteria for the new finance lease and short-term leases.
  • Recognize the new recognition and measurement requirements for both lessees and lessors.
  • Identify the recognition criteria for sales-type, direct financing, and operating leases.
  • Identify the overall requirements with respect to lease modifications.
  • Identify the criteria used for sale and leaseback transactions.
  • Identify the considerations with respect to a lessee’s involvement in construction of a leased asset.
  • Identify the presentation requirements for both lessees and lessors.
  • Recognize both qualitative and quantitative disclosure requirements for both lessees and lessors.
  • Identify the effective date for the new lease accounting standards.
  • Identify the significant differences between ASC 842 and IFRS 16.
  • Recognize considerations of and alternatives provided to private companies.
Last updated/reviewed: November 27, 2020

10 Reviews (38 ratings)Reviews

Member's Profile
Thorough written materials and good examples. The sale and leaseback section was a bit challenging as there was little explanation of the rules and simply two examples provided. Also, there were a couple typos in the material.
Anonymous Author
Great to see an updated ASC 842 presentation - thanks Kelen. The examples are easy to work through and understand.
Member's Profile
Good content. Covers the main topics. Just suggest including slides/video as the basis material as opposed to PDF
Member's Profile
This course has lots of detailed information. Good to keep as reference for understanding later.
Member's Profile
Very informative, liked the questions and how they aligned with the training material.
Anonymous Author
Very comprehensive section on this complex topic. Thank you for the lesson!
Member's Profile
A video presentation would have been helpful to augment the paper.
Anonymous Author
Very comprehensive detailed explanation of the new lease standard.
Anonymous Author
Appreciate having the thorough text to refer to in the future!
Anonymous Author
Concise. Subject matter was relevant and direct.


Course Complexity: Intermediate

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
  PDFASC 842 - The New Lease Accounting Standards