The revised effective date for private companies’ adoption of the new leasing standard (ASC Topic 842, Leases) is now January 1, 2022! Question: Will you be prepared to properly audit such transactions?
This course is designed to provide external auditors with practical and insightful perspectives on how to audit transactions under the Financial Accounting Standards Board’s (FASB) new leasing standard. You'll learn the new accounting and financial reporting requirements and how to substantively and analytically test them in accordance with Professional Standards.
Publication Date: October 2022
Designed For
Practitioners in public practice who conduct audits of privately-held organizations who have adopted ASC Topic 842.
Topics Covered
- FASB ASC Topic 842
- Organization of FASB ASC Topic 842
- What Is a Lease?
- Does a Contract Contain a Lease?
- New Leasing Standard
- Lessee Accounting
- New Lessee Lease Classification
- The New Capital Lease — Finance Lease!
- New Leasing Standard
- The New Operating Lease
- Lease vs. NonLease Components
- Lessee Lease Recognition and Measurement
- New Leasing Standard
- Lease Modifications
- Lease Modifications - Lessees
- Presentation, Disclosures & Transition Requirements
- Sample Journal Entries Existing Operating Lease with Practical Expedients Elected
- Sample Journal Entries Initial Measurement of ROU Asset and Lease Liability under ASC Topic 842
- Inquiry With Management Regarding Transition
- Auditing Under the New Leasing Standard
Learning Objectives
- Recognize the FASB's new leasing standard requirements
- Recognize how to describe and discuss the new accounting and reporting requirements of leases
- Identify which audit procedures to perform
- Recognize how to properly audit the transition requirements and initial adoption of the new standard
- Identify approximately what amount of right-of-use assets and lease payment liabilities will be added on by U.S. companies' balance sheets on account of the new lease standard
- Identify the ASU issued by the FASB on June 2, 2020 which amended the effective date of the new leasing standard
- Identify a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration
- Identify they type of costs that are commissions or payments made to an existing tenant to terminate the lease
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)
Program Prerequisites
General knowledge of ASC Topic 842 and AICPA Professional Standards.
Advance Preparation
None
Instructor
Salvatore Collemi
Salvatore A. Collemi, CPA is the Managing Member and Founder of Collemi Consulting and Advisory Services, LLC where he relies on over two decades of global business experience to guide U.S. and International public accounting firms, litigation attorneys, valuation experts, the C-suite and related institutions that support the profession in order to promote and enhance audit quality.
His practice provides outsourced high-level strategic and technical accounting & auditing guidance. Services include a full range of U.S. and International accounting & auditing consultations, technical reviews of financial statements and workpapers, AICPA Peer Review & PCAOB Inspection preparation, perform internal inspections, customized CPE training, independence & ethics consultations, etc. Salvatore is also a keynote speaker at company retreats and conferences. His past work experience at the U.S. Securities and Exchange Commission and the AICPA, combined with his previous roles as external auditor and technical partner to both national and international public accounting firms, gives him a keen understanding into the mindset of both regulators and standard-setters that he shares with his clients.
As a recognized subject matter expert on International Financial Reporting Standards (IFRS), Salvatore was named by the AICPA as an official participant in the development and review of IFRS questions for the Uniform CPA Examination and served as the IFRS Expert-at-Large for the AICPA Board of Examiners Content Committee from 2011-2014. Salvatore also served as AICPA liaison to the International Federation of Accountants (IFAC) Transnational Auditors Committee and Global Peer Review Subcommittee to assist in the development of their international quality assurance review program.
For more information about Salvatore, visit Collemi Consulting & Advisory Services, LLC and LinkedIn.