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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: April 8, 2020

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
  7:37Lease Definition
  11:38Right to Control-Part 1
  13:40Right to Control-Part 2(a)
  6:20Right to Control-Part 2(b)
  7:08Identified Asset
  3:22Period of Use
  7:52Lease Consideration
CONTINUOUS PLAY
  1:00:01Identifying 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