FASB's new lease standard (ASU 2016-02, Topic 842) makes significant changes in lessee accounting and disclosure. Lessor accounting only has minor changes from prior guidance. Effective in 2019 (or 2020 for nonpublic companies), most long-term leases will be capitalized on the balance sheet of lessees as right of use (ROU) assets and lease payment liabilities. This 8-hour program will take a deep dive into lease accounting based on the new guidance covering all aspects of lessee and lessor accounting and disclosures. It will also illustrate the accounting for finance and operating leases for both lessees and lessors and discuss related business implications of the new lease standard. A number of workshop cases are included for application and discussion purposes.
CPAs, accountants, and financial professionals in companies that are lessees or lessors, as well as auditors with clients that are lessees or lessors.
Participants will be able to: Describe the new lease terminology including finance and operating leases Define a lease contract Identify and describe the recognition and measurement techniques for right of use (ROU) assets and lease payment liabilities Through the use of workshop cases, develop the expertise necessary to account for finance leases and operating leases by both lessees and lessors following the new lease guidance
MAJOR SUBJECTS Definition of a lease Searching for embedded leases in contracts Operating leases Finance leases including lease classification Allocating consideration to lease components and non-lease components Identifying the proper lease term Interaction with revenue recognition rules Lease modifications and terminations Transition guidance Disclosures
Prior exposure to lease accounting as a lessee or lessor will be helpful
Massachusetts Society of CPAs 105 Chauncy Street, 10th Floor,
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