Leases: New and Existing Leases-Annual & Monthly Accounting

Author: Pat Patterson

CPE Credit:  2 hours for CPAs

This course will define whether there is a lease. If there is a lease, is it a finance lease or an operating lease? Depending on the type of lease, this course will detail how to initially record the “right of use asset” and the lease liabilities of the lessee. This webinar will illustrate how to correctly record the annual and monthly amounts for the leases. The correct financial statement treatment of leases is examined.

Publication Date: May 2019

Designed For
Any professional with clients or employers that are lessees and need to know the correct accounting based on the latest pronouncements from the Financial Accounting Standards Board (FASB).

Topics Covered

  • Lease definition
  • Finance or operating lease?
  • Recording initially of the asset and liability depending on the type of lease
  • What are the correct procedures to use for the monthly and annual accounting for the leases?
  • Lease modifications, cancellations, and extensions will be detailed
  • What are the present value percentages to be used?

Learning Objectives

  • Identify a lease by the correct definition
  • Differentiate when is it a finance lease or an operating lease
  • Recognize how to record lease assets and liabilities monthly and annually for finance and operating leases
  • Identify how to properly present the assets and liabilities on the financial statements
  • Differentiate a type of arrangement is outside the scope of ASC 842
  • Identify when a payment from a lessee perspective is classified as a financing activity within the statement of cash flows
  • Recognize when a payment should be included for purposes of determining the lease payment
  • Describe steps with respect to the big picture of lessee accounting
  • Recognize when ASC 842 does not require lessees to apply the guidance to arrangements with a lease term less than how many months
  • Identify when a lessee should record lease expense for an operating lease under the new ASC 842
  • Describe which section of the statement of cash flows operating lease payments are classified within
  • Identify which lease classification criteria did not exist under the previous ASC 840
  • Recognize when the new lease standard is effective for public business entities for fiscal years beginning after what date
  • Describe which type of initial direct cost is excluded with respect to the measurement of a right-of-use asset
  • Differentiate which ASU addresses potential areas of improvement related to, but not limited to, lessor reassessment of lease term and purchase option

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
Any professional with clients or employers that are lessees and need to know the correct accounting based on the latest pronouncements from the Financial Accounting Standards Board (FASB).

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $55

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