The New Lease Accounting Standards

Study Level:  Overview
Delivery Method:  Online self-study
Provider of Record: WebCE
Field of Study: Accounting
Prerequisites: General Understanding of the lease accounting standard issued by FASB

Course Description: 

This course provides an in-depth overview of the new lease accounting standards issued by the Financial Accounting Standards Board (FASB) in February 2016. This includes a discussion of the primary reasons for the change as well as how to identify a lease within a contract. This course also provides an in-depth review of lease classification, initial measurement, subsequent measurement, presentation & disclosure, as well as transition requirements. The course concludes with a discussion of some of the significant differences between IFRS 16 (the IASB’s new lease accounting standard) as well as private company considerations. 

Course Learning Objectives:

Upon completion of this course, you will be able to:

  • recognize how the new leasing standard has evolved and how the new standard is organized
  • determine whether an arrangement contains a lease
  • identify considerations with respect to substitution rights and decision-making rights
  • identify the criteria for the new finance lease and short-term leases
  • recognize the new recognition and measurement requirements for both lessees and lessors
  • identify the recognition criteria for sales-type, direct financing, and operating leases
  • identify the overall requirements with respect to lease modifications
  • identify the criteria used for sale and leaseback transactions
  • identify the considerations with respect to a lessee’s involvement in construction of a leased asset
  • identify the presentation requirements for both lessees and lessors
  • recognize both qualitative and quantitative disclosure requirements for both lessees and lessors
  • identify the effective date for the new lease accounting standards
  • identify the significant differences between ASC 842 and IFRS 16
  • recognize considerations of and alternatives provided to private companies
Published: Nov. 2016