Lease Accounting Essentials For Finance Professionals

Unlock the complexities of lease accounting, designed to equip you with the practical skills and knowledge for success!

What you'll learn

Introduction to Lease Accounting: Understand the fundamentals of lease accounting, including the definitions, classifications, and key components involved.

Lease vs. Rent: Learn the distinction between leases and rental agreements, and the various terms that apply to each.

Operating vs. Finance Leases: Differentiate between operating leases and finance leases, understanding their impact on the balance sheet, income statement.

Accounting for Leases: Gain a thorough understanding of how to account for operating leases and finance leases, with practical examples to reinforce concepts.

Lease Accounting Under US GAAP: Understand the latest changes in lease accounting under US GAAP, including the transition from the old standard to ASC 842.

Lease Accounting Under IFRS: Compare and contrast US GAAP and IFRS standards, focusing on the similarities and differences in lease classification.

Practical Examples and Exercises: Apply theoretical knowledge to real-world scenarios through practical exercises.

Advanced Lease Topics: Delve deeper into complex lease topics such as sales-type leases, direct finance leases, impairment, and re-measurement of leases.

Requirements

Basic Accounting Knowledge: Students should have a foundational understanding of financial accounting principles, including familiarity with balance sheets, income statements, and cash flow statements.

Understanding of Financial Statements: Basic knowledge of how financial statements are prepared, including the ability to interpret assets, liabilities, equity, revenue, and expenses.

Familiarity with General Accounting Terminology: Students should be comfortable with accounting terms such as assets, liabilities, revenue recognition, depreciation, and accrual accounting.

No Advanced Requirements: There are no specific advanced prerequisites for this course. It is suitable for students who are new to lease accounting or looking to solidify their knowledge.

Willingness to Learn: A keen interest in understanding how leases impact financial statements and a commitment to completing practical exercises and examples provided in the course.

Description

In this course, students will explore the complex world of lease accounting, learning how to apply accounting principles to various types of leases, including operating leases, financial leases, and sales-type leases. The course covers both theoretical knowledge and practical examples to ensure that learners can effectively manage lease transactions under different accounting frameworks, including US GAAP and IFRS. This course is designed for finance and accounting professionals who wish to deepen their expertise in lease accounting, as well as students looking to enter the field of accounting and finance.Section 1: Introduction This section introduces students to the concept of lease accounting, its importance in financial reporting, and the fundamentals of lease transactions. It begins with an overview of lease accounting principles, setting the foundation for more advanced topics covered later in the course. Learners will also get an insight into the global accounting standards that govern lease transactions, ensuring they are equipped to handle leases in compliance with the relevant regulations.Section 2: Advantages and Disadvantages In this section, students will examine the advantages and disadvantages of leasing compared to other forms of financing. They will learn how leases can benefit businesses, such as by improving cash flow and providing flexibility. On the flip side, the course will also cover the disadvantages, such as the long-term financial commitments and the complexity of accounting for leases. This section helps students understand when leasing is the best option for companies and its implications on financial statements.Section 3: Lease and Terms This section differentiates between leases and rents, clarifying common misconceptions. Students will gain a deep understanding of the terms used in lease accounting, such as lease agreements, payments, and duration. This section is crucial for understanding how lease terms affect the classification and accounting of leases under various accounting standards.Section 4: Operating Leases In this section, students will dive into the specifics of operating leases, learning how to recognize, classify, and account for operating leases. The lectures cover the definition, structure, and reporting requirements of operating leases, as well as how these leases are reflected in financial statements.Section 5: Accounting for Operating Lease This section focuses on the detailed accounting treatment for operating leases, providing students with practical examples and exercises. Learners will practice recognizing and reporting operating lease transactions from both the lessee's and lessor's perspectives. They will also be introduced to finance leases, including how to account for these leases under various scenarios.Section 6: Lease Accounting Under US GAAP In this section, students will explore the intricacies of lease accounting under US GAAP, with a special focus on ASC 842. The section covers key topics such as the new definition of leases, lease classification, lease terms, and fixed payments. Students will learn to apply the US GAAP standards to different lease transactions, preparing them for real-world scenarios. Comparisons with IFRS will also be discussed to give a global perspective on lease accounting.Section 7: Working with Lease Examples In this section, students will apply their knowledge to real-life examples, learning how to account for both operating and finance leases in various business contexts. Through these exercises, learners will enhance their skills in working with complex lease transactions, helping them to confidently apply lease accounting in practice.Conclusion:By the end of this course, students will have a thorough understanding of lease accounting principles, practices, and the application of accounting standards such as US GAAP and IFRS. They will be equipped with the knowledge to manage lease transactions effectively, ensuring accurate financial reporting and compliance. Whether you are an aspiring accountant or an experienced professional, this course will provide the expertise needed to master lease accounting.

Overview

Section 1: Introduction

Lecture 1 Introduction to Lease Accounting

Section 2: Advantages and Disadvantages

Lecture 2 Advantages of Lease

Lecture 3 Disadvantages of Lease

Section 3: Lease and Terms

Lecture 4 Lease vs Rent

Lecture 5 Terms of Lease Accounting

Section 4: Operating Leases

Lecture 6 Operating Leases

Lecture 7 Operating Leases Continues

Section 5: Accounting for Operating Lease

Lecture 8 Accounting for Operating Lease

Lecture 9 Working on Example 1

Lecture 10 Working on Example 2

Lecture 11 Financial Lease

Lecture 12 Accounting for Finance Lease

Lecture 13 Working on Example 3

Lecture 14 Executor Cost

Lecture 15 Lessor Perspective

Lecture 16 Sales Type Lease

Lecture 17 Sales Type Lease Continues

Lecture 18 Direct Finance Lease

Section 6: Lease Accounting Under US GAAP

Lecture 19 Lease Accounting Under US GAAP

Lecture 20 New Gaap - Changes in Definition

Lecture 21 Lease Classification Model

Lecture 22 Lease Term

Lecture 23 Determining the Fixed Payments

Lecture 24 PR 4 - Lease Classification

Lecture 25 Working on PR 5

Lecture 26 Understand Lease Accounting

Lecture 27 Working on PR 6

Lecture 28 Lessor Prospective

Lecture 29 Working on PR 7

Lecture 30 Impairment

Lecture 31 Re-Measurement

Lecture 32 ASC 842 Vs IFRS

Accounting Professionals: Individuals working in accounting or finance roles who want to deepen their knowledge of lease accounting, including accountants, auditors, and financial analysts.,Corporate Finance Teams: Professionals involved in managing leases, such as CFOs, financial managers, and controllers, looking to stay updated with the latest lease accounting standards.,Students and Aspiring Accountants: Students pursuing accounting or finance degrees who wish to gain a practical understanding of lease accounting principles and how they apply under different standards, such as US GAAP and IFRS.,Legal Professionals in Finance: Lawyers or legal professionals who work with companies on leasing agreements or corporate structuring and need a deeper understanding of how lease transactions are accounted for.,Business Owners and Managers: Small to medium-sized business owners or managers who handle leases or rental agreements and want to better understand the accounting impacts of these transactions.,Anyone Interested in Corporate Accounting Standards: Professionals interested in learning the nuances of accounting for leases and understanding how changes in lease accounting standards affect financial reporting.