Overview
Accounting for and auditing leases was always a challenging task. Adding the implementation of the lease accounting guidance in ASC 842, Leases, will undoubtedly add that much more complexity to this audit area.
In this module, we will review the new lease accounting model for lessees, compare and contrast the new model with the existing guidance in ASC 840, and review in detail the key considerations in accounting for operating leases under ASC 842 and the other new guidance in the standard.
Then, we’ll review common audit procedures related to auditing the lease liability and the related Right-of-Use asset, including reviewing the enhanced lease disclosure requirements under ASC 842 and review common audit procedures to perform over the cumulative effect adjustment which entities must record when they adopt ASC 842. (Please Note: This module is part of Surgent's Audit Skills Training: Level 3.)
Major Topics:
- ASU No. 2016-02, Leases (Topic 842)
- Overall lease accounting guidance for both lessees and lessors
- Detailed review of accounting by lessees
- Transition guidance
- Other operational issues
- Control and risk considerations related to auditing leases
- Common audit procedures related to auditing leases and the adoption of ASC 842
Learning Objectives:
- Comprehend and apply the FASB’s comprehensive new lease accounting guidance found in ASU No. 2016-02, Leases (Topic 842)
- Auditing considerations related to ASC 842 transition and subsequent accounting