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This course provides a basic understanding of the new lease accounting rules pursuant to Accounting Standards Codification (ASC) Topic 842, Leases, issued in February 2016. ASC 842 makes substantial changes to the accounting for leases, primarily for the Lessee.
A lease conveys the right to the Lessee to control the use of the identified property, plant, or equipment for a period of time in exchange for consideration to the Lessor. For the Lessee, leases are either Finance leases or Operating leases. The Lessee will record a right of use asset and lease liability for all leases with a term greater than one year. A Finance lease must meet one of five requirements, four of which are similar to prior capital lease accounting. If a lease is not a Finance lease, it’s an Operating lease. Most leases of equipment will be Finance leases and space leases will be Operating leases. For the Lessor, a lease is either an Operating lease, Direct Financing lease or Sales-Type lease. In general, the accounting for the Lessor has not changed substantially from the prior rules.
Accounting for leases from both the Lessee's and Lessor's perspective will be analyzed as well as lease straight lining, advantages and disadvantages of leasing, financial statement disclosure and the financial impact of the new rules.
Learning Objectives
- Discover the new accounting rules pursuant to Accounting Standards Codification (ASC) Topic 842, Leases.
- Explore the accounting for Finance and Operating leases for Lessees.
- Explore the accounting for Operating, Direct Financing, and Sales-Type leases for Lessors.
- Discover how to calculate right of use asset, lease liability, interest expense, and amortization of the leased asset.
- Discover specific examples of lease accounting for both Lessee and Lessor.
- Discover the concept of straight lining of leases.
- Recognize the advantages and disadvantages of leasing.
- Identify the new financial statement disclosures for leases.
50 Reviews (190 ratings)Reviews
Gene Sheets
(Accounting Manager at OVEC)
Liked to keep up to date with new changes.
Anonymous
(Chair)
A complex course for introductory purposes
Gwen Clemings
(Senior Consultant at Sirius Solutions, LLP)
Easy to follow.
Anonymous
(Accountant)
That is great!
Anonymous
(Consultant)
Good overview of the new lease accounting rules with examples to reinforce understanding. One of the exam questions, however, seems to provide an answer contrary to the information provided in the presentation slides. It states lessor accounting for an operating lease of rental space includes "A debit to leased asset and a credit to net investment in lease." as the correct answer. The slide presentation clearly indicates that the answer should be a dr. to cash and a cr. to rent income. I believe a dr. to cash and a cr. to rental income is the correct answer for lessor's operating lease. Why would one ever dr. a leased asset and cr. to net investment in lease?
Anonymous
(Manager, Conservatorship Operations)
Overall effective overview. Test focused more on whether one can perform calculations versus understanding the basics of new lease accounting rules and impact. Since it is a "101" course, I believe the concepts and impact are more important than the calculations. Instructor starts off the presentation very technical, with the information I wished to glean more in the impact and overview. For those in the business of lease accounting, this would be fine.
Anonymous
(Accounting Solutions Senior)
Overall, I liked the course. I would like a little more explanation of some of the rules rather than just reading the slides. All accounting rules are written in very complex terms and I felt as though the instructor was merely reading the slides for most of the course.
Dan Villanueva
( at New York Times)
A great introductory course for the new lease accounting standard. Covers pretty much all of what I'm expecting for the course (overview of the new rules). As other students pointed out, the exam was too technical and also one question has 2 possible answers.
Douglas Graham
(Treasury Manager at Baker Hughes )
Liked the entry, schedules. Anyone wanting to learn about basic lease accounting. I say that without knowing any advanced lease accounting, just assume it gets more complicated. Would be nice to get excel incorporated in here.
Thomas Hayes
(- at University of Arkansas - Fort Smith)
I like how well the course is organized. I'm surprised at how much I need to prep for teaching in my intermediate course. Anyone teaching intermediate accounting would benefit.
Anonymous
(cfo - consultant)
One of the oldest FASB's still around - great refresher - all accounting personnel needs to know the 4 criteria - well covered.
Shirley M Jack
(Corporate Accounting and Cash Manager at Evergreen Packaging Inc)
I think that it should state that a calulator is needed to review some of the calculations presented in presentation.
Anonymous
(None)
I do not agree with the answer for question number 4. Is that not the correct answer for a lessor, not a lessee?
Anonymous
(Accounting Manager)
A good course to refresh your know-how about leasing topic. Informative, detailed yet concise. Worth the time.
Torin Campbell, CMA
(Controller at Form-A-Fab)
Good foundational information about accounting for leases that I'll keep in my files for future reference.
Pamela Gilbert
(Founder and Director at FutureFit)
Short and to the point. Good presentation. Also good that new proposed accounting rules discussed.
Barry Davis
(Tax Accountant at CP Kelco)
Good overview of lease accounting, and how to determine and treat the different types of leases.
Simon Adell
(Chief Financial Officer at Undisclosed)
Toughest course I've taken her so far, but very comprehensive and very recent material.
Anonymous
(CPA)
I was glad that the course had the updated information on the new and upcoming changes.
Brett Pfuehler
(Lead Auditor at The Dow Chemical Company)
Simple topic breakdowns in short segments. Good summary and questions prior to test.
Lorna Fisher
(Retired Finance Professional with active.. at Retired and enjoying time to pursue pers..)
Content good however pace could have been a little slower with more examples.
Kevin Barnes
(- at Next Level Solar)
Provided a well rounded explanation and the considerations in lease accounting.
Bette Shepherd
(CFO at D&S Green Services)
The instructor sped through the course and mostly just read from the slides.
Louis Giovachino
(student at University of Florida)
I did not like that the final exam seemed to require a financial calculator.
Steve Breault
(Controller at LTC Partners)
General review of lease accounting with examples that are easy to follow.
Anonymous
(Senior Consultant - Specialty Tax Servic..)
The pace was a little too fast, instructor basically just read the slides.
Ara Toroyan
(Director - Financial Planning & Procurem.. at NCCI Holdings, Inc.)
Very complicated accounting but a well taught class. Kudos to you.
Anonymous
(Finance Leader)
Would like more charts and diagrams, very strictly text and tables.
Anonymous
(-)
Very concise and practical presentation. A great refresher course.
Tim Philips
(Controller at Self)
Lease accounting is critical for finance staffs of mfg enterprises
Sheila Esposo
(NONE at NONE)
The course was short, informative and very well presented.
Anonymous
(CPA, CFE, CGMA)
Nice course with great illustration of journal entries.
Anonymous
(-)
A lot packed in to a short course. very helpful!
Teresa Spector
(Not Provided at Elsevier)
the narrator just seemed to read fro the slides
Rajeev Sahni
(Director - Capital (RWA) at UBS)
detailed information and good presentation
Antonio Crawford
(Senior Internal Auditor - Budget/Busines.. at Individual)
Very well explained, practical, succinct.
Theodore Zeck
(Accounting Systems Specialist at Whitestone REIT)
A lot of material for a one-hour course.
Anonymous
(CFO)
Good concise presentation of the basics
Anonymous
(Chief Financial Officer)
Not much you can do with Lease subject.
Anonymous
(Fiscal Officer)
i have learned through this course
Matt Osmundsen
(Director of Financial Planning at Baldwin Technology Company, Inc.)
Great course! Very informative.
Anonymous
()
Very informative.
David Farlett
(Chief Financial Officer at AFC Urgent Care)
Informative course
Mary May
(Assistant Controller at Stephen Gould Corporation)
very informative
Anonymous
(Senior Director & Controller, Finance)
welll presented
Anonymous
(Finance & Strategic Planning Consultant)
great resource
Anonymous
(attorney cpa)
Difficult
Patrenia McAbee
(Owner at McAbee Consulting)
Good
Ravi Patel
(Tax Accountant at Patel)
na
Qasim AlQattan
(Senior Internal Auditor at BCFC)
y
Prerequisites
Course Complexity: Intermediate
Prerequisite: Basic proficiency in US GAAP accounting
Advanced Preparation: None
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 ext. 106, or send an e-mail to .