Instructor for this course
more

This course outlines the fundamentals of equipment leasing from the viewpoint of lessees. It describes the kinds of equipment that can be leased, the pros and cons of equipment leasing compared to other acquisition methods, the best sources for equipment lease financing, and the best way to determine if leasing or buying is the better financial decision for your company.

Special tax advantages available for equipment acquisition for small businesses are reviewed with examples. Also covered are the various types of equipment leases, the advantages and disadvantages of each method, and the key points to keep in mind in administering a portfolio of leased equipment.

Finally, we take a first look at the new accounting rules for lease accounting under Accounting Standards Codification (ASC) Topic 842 - Leases, and provide an overview and basic accounting entry examples for both operating and financing leases. 

The benefit to be gained by taking this course: Those responsible for making leasing acquisition decisions will learn the various leasing types and be able to determine the best option for their needs and how to find the best source for lease financing. Accountants will learn how the new accounting rules are different from previous rules and be prepared to properly record leases under the new rules that are effective beginning in 2019. Finally, additional resources for in depth understanding of the new rules are provided at the end of the course. 

Learning Objectives

  • Explore the kinds of equipment that can be leased and the kinds of leases that are available, with the advantages and disadvantages of each. 
  • Recognize how leasing differs from simply borrowing money from a bank, and some of the considerations in deciding which option to choose.
  • Discover examples of how tax advantages currently available can significantly reduce the initial cost of acquiring equipment, whether leased or purchased.
  • Explore the new accounting rules that are effective beginning in 2019 for recording and reporting equipment leases with journal entry examples provided.
  • Recognize some of the key differences that must be considered in special situations, including when leasing used equipment or engaging in the sale and leaseback of equipment you already own. 
Last updated/reviewed: November 9, 2019

5 Reviews (27 ratings)Reviews

3
Anonymous Author
The information provided in the presentation was worthwhile but the questions asked in the final exam were tricky and required you pay close attention to information only alluded to in the slides or discussed beyond the slides. This course would be best for people who are trying to get a better understanding of when and why to lease as opposed to those wanting to understand the intracacies of accounting for leases. It did provide some good resources regarding accounting for ASC 842.
4
Anonymous Author
The course provides a basic overview of equipment leases. This is more from an operational perspective than a financial accounting perspective. Only limited information on ASC 842
4
Member's Profile
Good overview of the topic. The course material could have been more detail. I recommend this class.
5
Member's Profile
Pretty basic information but a good review. I hate doing these reviews.
4
Anonymous Author
Final Exam options could be worded more succinctly

Prerequisites

Course Complexity: Intermediate

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 Syllabus
INTRODUCTION AND OVERVIEW
  1:54Introduction to Equipment Leasing for Lessees
  4:20Ways to Acquire Equipment
  2:11Pros and Cons of Leasing
  9:08Borrow or Lease?
  8:34How to Get Started
  4:18Sources for Lease Financing
  9:37Leasing Used vs. New Equipment
  17:03ASC 842- New Accounting Rules
  13:18Administration and Management & Summary
CONTINUOUS PLAY
  1:10:21Equipment Leasing for Lessees
SUPPORTING MATERIALS
  PDFSlides: Equipment Leasing for Lessees
  PDFEquipment Leasing for Lessees Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM