New Lease Standards: ASU 2016-02 (Currently Unavailable)

Author: Alan Anderson

FASB is set to issue the final lease standard in February of this year. The final standard impacts both lessees and lessors as they recognize, measure and present cash flows arising from leases. The final ASU will apply to all leases with the exception of those for intangible assets, exploration or use of some natural resources and those involving biological assets.

This course will take participants through the latest on the lease accounting standard and detail how those changes will affect businesses that have lease transactions. ASU 2016-02 will affect many clients and now is the time to get up to speed on these changes and prepare to answer the many questions clients and management will have regarding how these standards will change balance sheets.

Note: This course does not contain audio.

Publication Date: May 2016

Designed For
Professionals in public practice, industry, government, and education who deal with entities with or expecting to have leases and wish to stay current on professional accounting standards regarding leases.

Topics Covered

• Summary and Scope
• Lease Identification and Classification
• Lessee Accounting
• Lessor Accounting
• Other Provisions
• Disclosures
• Implications for your client and the users of their financial statements

Learning Objectives

• Identify the details of the ASU 2016-02 on accounting for leases and what they mean
• Recognize how ASU 2016-02 will affect clients
• Identify and prepare how to answer the many questions clients and management will have regarding how these standards will change balance sheets
• Describe the differences between a Type A or Type B lease
• Recognize what is included in determining the present value (PV) of lease payments under lessee accounting
• Identify lessees regarding the presentation of items on various financial reports
• Recognize the accounting items which must be reported at the commencement of a Type A Lease
• Differentiate disclosures which may be included in lease reporting
• Identify the potential business impact of the new lease standards
• Recognize the ASU lease standards revised on February 25, 2016
• Differentiate which leases are not affected by the new standards
• Identify correct statements regarding leases of real property
• Recognize where to present financial statements under the new lease standards
• Describe lessor accounting items that must be addressed after the commencement of a lease
• Differentiate the provisions of ASU 2016-02
• Describe the financial impacts of financial ratios
• Recognize what clients should be considering before the new lease provisions take effect
• Identify the commencement of a lease regarding lessee accounting
• Describe the steps to determine the basis for the present value of lease payments when examining rentals

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
Familiarity with Generally Accepted Accounting Principles and Leases.

Advance Preparation
None