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The new Accounting Standards Codification (ASC) Topic 842, leases, issued to replace the previous leases standard ASC 840. This standard became effective from the calendar year started on January 1, 2019 for the public companies. For private companies, the standard will be effective from the calendar year beginning January 1, 2020.

This new standard brings most operating leases which were accounted for off-balance sheet under the previous leases standard ASC 840, onto the balance sheet. That's why the question of whether a contract is within the scope of leases or not is essential to be considered.

This course discusses the definition of the lease and the criteria that must be met for a contract to constitute a lease agreement.

This course guides the audience to correctly identify whether a contract is a lease or contains a lease and explains how to distinguish it from the other non-lease service contracts.

Under this standard, lease identification is a critical process; this course will analyze this process step-by-step, providing practical examples, which will clarify the implementation issues associated with that process.

 

Course Key Concepts: ASC 842, lease, lessee, lessor, ASC 840.

Learning Objectives

  • Identify the criteria for the lease agreements.
  • Recognize the identified assets, the right to control, lease period, and consideration.
  • Explore the differences between the lease and the other non-lease service agreements.
Last updated/reviewed: February 21, 2021

8 Reviews (46 ratings)Reviews

4
Anonymous Author
effective flowcharting in this presentation that allows the reader to visualize the thought process of indentifying if a lease exists and the type of lease that exists
5
Anonymous Author
This is a complex issue. The instructor goes over it methodically and provides clear answers to the questions.
5
Anonymous Author
Good overview of ASC 842 standard. Repetition of the standard was good to really embed the info into memory
5
Anonymous Author
Enjoyed the decision trees the instructor provided for a clear reference.
5
Anonymous Author
Excellent content and good real-life examples that were easily followed.
4
Anonymous Author
I enjoyed the course very much and found it really informative.
5
Anonymous Author
Good summary of this new topic. Thank you for this lesson.
5
Anonymous Author
Great quick review of material. Would recommend to others.

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
  2:24Introduction to Identifying leases under the new ASC 842
  7:24Lease Definition
  11:28Right to Control-Part 1
  12:55Right to Control-Part 2(a)
  6:11Right to Control-Part 2(b)
  6:50Identified Asset
  3:16Period of Use
  7:32Lease Consideration
CONTINUOUS PLAY
  57:57Identifying leases under the new ASC 842
SUPPORTING MATERIAL
  PDFSlides: Identifying leases under the new ASC 842
  PDFIdentifying leases under the new ASC 842 Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM