Course Description
In late 2019, the FASB announced a change in the effective date of implementing the new leasing standard for private companies from 2020 to 2021. The new standard covers accounting guidance for both lessees and lessors. However, accounting by lessees will mostly be affected. Nearly all leases by a lessee, except those for less than a twelve-month term, will be capitalized as a right-of-use asset and a lease liability. An example lease will be used to cover topics such as lease classification, lease term, measurement at the commencement date, subsequent measurement, and journal entries. The guidance on transition to the new standard will also be discussed. New disclosure requirements will be demonstrated by reviewing the disclosures of public companies that have already implemented the guidance.
Learning Objectives
Upon successful completion of this course, participants will be able to:
- Understand the FASB reasons for issuing new leasing guidance
- Determine if a contract is a lease and the types of lease to a lessee and lessor
- Discuss the recognition, measurement, and presentation requirements in the financial statements for both the lessee and the lessor
- Prepare the journal entries for lessee and lessor
- Understand the alternative ways to transition to the new lease guidance
- Identify the leasing disclosures for a private entity
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