In February 2016, the FASB issued its new accounting standard update on Leases referred to as ASU No. 2016-02, Leases (Topic 842). The new leases standard update will increase transparency and comparability among organizations that lease buildings, equipment and other assets by recognizing the assets and liabilities that arise from lease transactions and disclosing key information about leasing arrangement. Basically, current off-balance sheet leasing activities will be required to be reflected on balance sheets so that users of the financial statements can more readily and accurately understand the rights and obligations associated with these transactions.
Course objectives include:
- Understanding of the main provisions of the new standard update and its difference from the current year GAAP.
- Identify a lease in a contract based on the new definition of a lease as well as the identification, separation, allocation of contract consideration (price/value) among lease components and non-lease components.
- Lease classification between finance and operating determination updates.
- Important considerations in the determination of the commencement date of a lease and the term of a lease specifically with regards to taking possession of or receiving control over the use of the underlying asset and options to extend.
- How to record, report and present lease transactions in the financial statements under Topic 842 for new and existing lease agreements from the lessee's perspective.
- Highlights of changes to lessor accounting under Topic 842.
- What are the new additional required qualitative and specific quantitative disclosures as well as other presentation matters in the financial statements?
- Business concern considerations and tips for preparing for implementations of the Topic 842.
Presenters: Kimberly Robertson, Partner and Rodwell Alfred, Senior Manager
Fields of Study: Audit
Amount of Recommended CPE: 2
Type of Delivery Method: Group-Live
Learning Objectives: Attendees will obtain an understanding of the main provisions of the new standards update.
Program Level: Basic
Advanced Preparation: NONE