Course Information

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (ASC 842) providing new requirements of financial accounting and reporting for lessees and lessors. This new standard represents the first comprehensive overhaul of lease accounting since FAS 13 was issued in 1976. The new guidance will affect entities across all industries because most companies enter into contracts that contain leases to support their business operations. Lessees will likely see the most significant changes as they are required to recognize substantially all leases on their balance sheets with a corresponding right-of-use asset. While lessor accounting remains similar to previous guidance in most respects, there are some important changes. For example, certain principles of the lessor model are updated to align with changes to the lessee model and the new revenue recognition standard (ASC 606). The new lease guidance introduces significant changes to lease accounting, s

1. Recognize the improvement over the lease accounting through the release of ASC 2016-02 2. Cite the key changes of the leasing practice compared to former ASC 840 3. Identify the applicability of the lease standard 4. Identify key concepts in lease accounting 5. Recognize the difference between U.S. GAAP and IFRS affecting the lease accounting practice 6. Identify the challenges and strategies in implementing the lease standard 7. Recognize the impact of the lease standard on the organizations 8. Identify types of leases for lessees and lessors 9. Identify the accounting rules for initial direct costs 10. Recognize the methods of accounting for different types of leases by lessees and lessors 11. Identify the presentation and disclosure requirements by lessees and lessors