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: August 4, 2023
25 Reviews (97 ratings)

Reviews

4
Anonymous Author
Overall, a good course! I would of like more from instructor on examples and engaging more in the respective topic. The lecture felt more as if he was reading from lecture notes. I feel the topic is important enough to take additional lessons.
2
Anonymous Author
Very poor presentation skills. The presenter simply reads the deck word by word. You could get to the same results by reading the deck on your own, which would likely take twice less time. Would not recommend this training.
3
Anonymous Author
I agree with what others said about the exam questions being confusing. They are poorly written. Instructor was dry but covered the subject completely, just no real life examples. However the objectives were easily met.
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
4
Member's Profile
I was hoping this course would contain more info on operating vs financing leases, lease obligations and right of use assets. I guess I got my courses mixed up.
4
Anonymous Author
Very clever way of teaching and testing the application (vs mere facts) for lease identification. The method of delivery (video) could use some improvements.
4
Member's Profile
Concepts were clear, but instructor seemed hesitant at times. There are some grammatical differences that make the content somewhat confusing.
5
Anonymous Author
Very through coverage of the of the ASC 842. I liked the examples and the explanations at the end of the questions.
3
Member's Profile
The exam questions were written in a manner that made them difficult to understand what the question was asking.
5
Anonymous Author
This is a complex issue. The instructor goes over it methodically and provides clear answers to the questions.
5
Anonymous Author
Thank you for including the example questions, I found them very helpful in understanding the course content.
5
Anonymous Author
Good overview of ASC 842 standard. Repetition of the standard was good to really embed the info into memory
3
Member's Profile
The instructor talked too slow. Seems like the course material could have been covered in much less time.
5
Member's Profile
I liked the way the trainer presented the topic to clarify the concepts in the easiest way.
2
Anonymous Author
Not a great course. Difficult to understand what the exam questions were actually asking.
1
Member's Profile
very dull energy made me want to go to sleep. Not like other courses or instructors.
5
Member's Profile
Very informative. The class provided the material in a clear and concise manner.
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.
3
Member's Profile
Course is helpful in understanding certain nuances to the new standard.
4
Anonymous Author
I enjoyed the course very much and found it really informative.
1
Anonymous Author
Very poor grammar and not engaging. Content was ok otherwise.
5
Anonymous Author
Great use of diagrams to explain the various lease concepts.
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.
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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 .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Identifying leases under the new ASC 8422:24
  Lease Definition7:24
  Right to Control-Part 111:28
  Right to Control-Part 2(a)12:55
  Right to Control-Part 2(b)6:11
  Identified Asset6:50
  Period of Use3:16
  Lease Consideration7:32
CONTINUOUS PLAY
  Identifying leases under the new ASC 84257:57
SUPPORTING MATERIAL
  Slides: Identifying leases under the new ASC 842PDF
  Identifying leases under the new ASC 842 Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam