New and Updated Lease Accounting 101 (Updated with Covid-19 Effects) - Webinar (Recorded)

Overview

This presentation on new lease accounting rules pursuant to Accounting Standards Codification Topic 842 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 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 and Lessors 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.

Why you should Attend

This is a great presentation for the beginner in business, accounting and finance and professionals and business owners to get a basic understanding of the new lease accounting rules pursuant to Accounting Standards Codification Topic 842 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 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 and Lessors 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.

Areas Covered in the Session

• Leases, lease accounting, lessors and lessees, sale-leasebacks, advantages and disadvantages of leasing and financial statement disclosure