Description

What you need to know about the lessee and lessor accounting models This course explains the lessee accounting model, including

- Lease and non-lease components

- Lease classification

- Amortization of the right-of-use asset

- Interest on the lease liability

This course also explains the lessor accounting model, including

- Transfer of risk

- Profit recognition

- Collectibility

Included in this course are detailed and illustrated examples with amortization tables and journal entries.

Target Audience

accountants and finance professionals

Course Objectives

- Recognize lessee accounting requirements for operating leases and finance leases under FASB ASC 842.

- Recognize lessor accounting requirements for sales type, direct financing, and operating leases under FASB ASC 842.

Subjects

Lessee and lessor accounting models

lease and nonlease components

lease classifications

Initial and subsequent measurement of leases

Prerequisites

Experience in application of accounting standard