Practical Approaches to Implementing the New Lease Accounting Standard
Description
The recently issued lease standard represents a radical departure from previous lease guidance. Many financial statements will recognize potentially significant assets and liabilities for the first time. The impact will be uneven depending on the business and the reaction of their creditors. This course aims to guide participants in understanding how the new standard will affect their company or clients and the practical implementation strategies which might ease the burden of transition.
Learning Objectives
Identify how the transition from operating leases to capitalization will affect companies of all sizes.
Explain the fundamental principles of the right to use model for capitalizing leases.
Distinguish which lease contracts are scoped into and out of the standard.
Recognize how the balance sheet treatment of leases will alter financial statement numbers, ratios, and loan covenants.
Identify the right of use, present value model for capitalizing leases.
Review the transition and disclosure implications of the new standard.
Major Topics
What was wrong with lease accounting?
The asset-liability approach to leases and its effect on the balance sheet
The effect of lease changes on covenants and likely lender reaction
Implementing the right of use, approach model for lessees and lessors
Renewal, termination and other lease specific issues
Implementation and transition considerations
Lease capitalization in non-GAAP reporting
Practical strategies to reduce the burden of implementation
Provider
Business Learning Institute
Course Level
Update
Professional Area of Focus
Accounting & Auditing
CPE Field of Study
Auditing
2
Accounting
2
Who Should Attend
Preparers and accountants in public practice and industry who need to understand how the new leasing rules will affect their key accounting numbers. Accountants who deal with financial institutions will gain a preview of the challenges they are likely to face.
