The New Lease Standard ASU 2016-02 and Other Amendments  - Guidance for Private Company Implementation and Post-Implementation Issues

Course Description:

The purpose of this course is to review the changes made to lease accounting by ASU 2016-02, Leases,
(as further amended by ASU 2018-01, Land Easement- Practical Expedient for Transition to Topic 842, and numerous other amendments), and to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Topics include a review of the new rules for lessees and lessors, the types of leases, how to account for the balance sheet, income statement and cash flows statement impacts of different types of leases, the implementation requirements, and more.

This course also addresses newly issued ASU 2023-01, Leases (Topic 842)- Common Control
Arrangements, addressing the application of the lease standard to common control arrangements.

This course uses materials entitled Implementing the New Lease Standard- ASU 2016-02 and Other
Amendments- Guidance for Private Company Implementation and Post-Implementation Issues – 2024 Edition, authored by Steven C. Fustolo, CPA
   

Learning Objectives:

Upon successful completion of this course, participants will be able to:

•  Recognize a key change made to GAAP by the new lease standard
•  Identify a type of lease that exists for a lessee under ASU 2016-02
•  Recall a type of lease for which the ASU 2016-02 rules do not apply
•  Recognize some of the criteria that determine whether a contract is or is not a lease
•  Identify some of the types of economic benefits a lessee can obtain from a leased asset
•  Recognize a right that ASU 2016-02 states does not prevent a lessee from having the right to direct use of an identified asset
•  Identify a threshold for a lease term to be considered a major part of an asset’s remaining economic life
•  Recognize who an entity might not want to use the risk-free rate to compute the present value of lease payments
•  Identify how a lessee should account for initial direct costs
•  Recognize items that are and are not components of a lease term
•  Identify how an entity accounts for a common control lease arrangement under ASU 2023-01
•  Recall the method a lessee should use to record interest expense on a lease obligation
•  Identify types of leases for a lessor
•  Recognize the rate that a lessor should use in performing the 90% test for a direct financing lease
•  Recall how a lessor should initially account for initial direct costs for a lease in certain instances
•  Identify how a lessor should account for lease payments received on the income statement for an operating lease