Examining ASC 842, Leases (NLS4)

Overview

ASC 842, Leases, is one of the more complex and impactful standards the FASB has updated in decades, likely second only to ASC 606, Revenue. This course is a one-stop shop for what you need to know about applying and understanding the lease accounting guidance. In this course, we will review how to measure the lease liability and right-of-use asset that will now be recorded on the balance sheet for all leases. We will also tackle the tricky issues of accounting for lease modifications and other lease remeasurement events, as well as address other major provisions of ASC 842, such as disclosures and short-term leases. In addition, we will review the income statement treatment of lease expense for all leases, for both lessees and lessors, and discuss recent FASB implementation guidance. Lastly, the course will cover all recent updates to the originally issued guidance in Topic 842, including those related to discount rates and common control arrangements.

With ASC 842 fully implemented and effective, now is the time to get up to speed on this complex standard.

Major Topics:

• ASU No. 2016-02, Leases (Topic 842)
• Overall lease accounting guidance
• Lessor Accounting 101
• Lessee Accounting 101
• Detailed review of accounting by lessees and lessors
• Sale and leaseback transactions
• Other operational issues
• Recently issued updates to the lease accounting guidance
• ASU No. 2023-01, Common Control Arrangements

Learning Objectives:

• Comprehend and apply the FASB’s comprehensive new lease accounting guidance found in ASU No. 2016-02, Leases (Topic 842)
• Recall operational issues in adopting ASC 842