2021 Leases Update

Author: Pat Patterson

This session is designed to provide professional accountants with insight on how to implement the changes for lease transactions under the Financial Accounting Standards Board’s (FASB) new leasing standards. One will learn the accounting and financial reporting requirements to agree with the requirements of the revised new standards for Lessees and Lessors.

Publication Date: December 2021

Designed For
Professionals who must still implement, update, and/or understand the new and updated multiple leasing standards from the FASB under ASC Topic 842, Leases. They should be aware of the latest changes in the new standards. The revised effective date for the new standards is for periods ending after December 15, 2001, effectively, January 1, 2022. Professional include CPAs in public practice, managers in industry, government, and education, internal auditors, and users of the financial information.

Topics Covered

• Recording the transactions under the new standards
• Reporting the transactions under the new standards
• Disclosures for the new standards
• Financial statement presentations of the standards
• Definitions of control
• Types of leases — finance, operating, and others
• Differences in US GAAP and IFRS

Learning Objectives

• Identify leases
• Identify types of leases
• Recognize how to record lease transactions according to their type
• Recognize how to disclose lease activity
• Recognize the nuances in types of leases for both lessees and lessors
• Identify and evaluate financial reports with leases
• Describe lease terms a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities
• Differentiate which ASU in 2018 provided for a land easement practical expedient with respect to the new lease standard
• Differentiate which ASU in 2021 provided for changes in the discount rate for lessees that are not public business entities
• Identify which area in the new lease standard that does not impact lessors

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Participants should have a general knowledge of US GAAP.

Advance Preparation
None