There are no prerequisites

Course Description

Many U.S. companies have become heavily involved in leasing assets rather than owning them. For example, according to the Equipment Leasing Association (ELA), the global equipment-leasing market is a $600-$700 billion business, with the U.S. accounting for about one-third of the global market. Any type of equipment can be leased, such as railcars, helicopters, bulldozers, barges, CT scanners, computers, and so on. The largest group of leased equipment involves information technology equipment, followed by assets in the transportation area (trucks, aircraft, rail), and then construction and agriculture. This course discusses the accounting, reporting, and disclosures of leases by lessees and lessors. It includes a discussion of sale-leasebacks, subleases, renewals and extensions, terminations, leveraged leases, and other issues.


Delta Publishing

For many years, Delta Publishing has offered a wide variety of continuing education courses for financial professionals. Topics covered by Delta’s courses include accounting, financial management, budgeting, investments, financial statement reporting, business management, IFRS, ethics, valuations, real estate, and business writing. The diversity and breadth of Delta’s course offerings make the company a prolific and unique contributor to the CPE world. Delta’s well-credentialed authors and contributors have also been published in numerous academic and professional journals and quoted by some of the leading financial media outlets.

Course Specifics

Mar 16, 2018
There are no prerequisites

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Recognize the advantages and disadvantages of leasing.
  • Identify characteristics and differences between the operating and capital lease method.
  • Recognize the characteristics and differences between operating, direct financing, and sales-type methods.
  • Recognize the characteristics of various types of leases, key terms, included costs, and recognition requirements when accounting for leases.
  • Compute leased asset and depreciation expense entries.
  • Recognize differences between GAAP and IFRS when accounting for leases.

Table of Contents

    Learning Objectives

The Leasing Market


Capital Lease Method


Operating Method

Direct-Financing Method

Sales-Type Method

Residual Value Considerations

Transfer of Lease Receivable


Subleases and Similar Arrangements

Modifications and Terminations

Renewals and Extensions

Leveraged Leases

Related Parties

Money-Over-Money Lease

Third Parties

Wrap Leases

Business Combinations

Disposal of a Business Segment

Current Value Financial Statements

Real Estate Leases

Land Only



Land and Building



Land, Building, and Equipment

Portion of a Building



Sale-Leaseback Involving Real Estate



Annual Report References

Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation

Choose Your Preferred Format

Online Access

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online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

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