Lease accounting has long been regarded as unsatisfactory. A second
joint FASB/IASB exposure draft has been developed to address the
shortcomings and as well as the criticisms from preparers and users. It
rebuilds lease accounting from the ground up and will have a major
effect on clients and their numbers. This course provides a
comprehensive analysis of the exposure draft and its impact on your
company and/or clients. In addition to lease accounting we will discuss
revenue recognition. Revenue is probably the most important number in
the financial statements. After years of effort a joint FASB/IASB
standard has been issued. It rebuilds revenue accounting from the ground
up. This course provides a comprehensive analysis of this guidance and
its impact on your company and/or clients.
Learning Objectives
Understand how the transition from operating leasesto capitalization will affect companies of all sizes
Learn how thebalance sheet treatment of leases will alter financial statementnumbers, ratios and loan covenants
Understand how lease contingenciesare incorporated into the lessee’s calculations of assets andobligations
Study the proposed receivables and residual approach tolessor accounting
Gain insights into how companies can implement thelease standard in a cost effective manner
Learn how OCBOA (cash andtax basis accounting) may provide smaller companies with a more costeffective approach to presentation
Understand the fundamentalprinciples of the contract- based approach to revenue recognitiondeveloped by FASB and IASB
Learn how to analyze contracts and accountfor them in terms of their performance obligations
Study how basicguidance is interpreted in more complex transactions using extensiveimplementation examples.
Understand how the new approach to revenuewill affect companies in a variety of industries
The multipledeliverables issue and its effect on revenue and cost calculations.
Learn how the percent of completion approach may be altered by therevised accounting model
Major Topics
The asset-based approach to revenue recognition
Analyzing contactsand performance obligations
Identifying and satisfying performanceobligations
More complex transactions – an examples-based approach
Continuous delivery and percent of completion
Multiple deliverablesand contract separation
Contract costs and onerous obligations.
Disclosures – a different approach
Lease recognition today; capitalversus operating
The asset liability approach and its effect on thebalance sheet
Incorporating contractual contingencies concerning leaseterm and lease payments into lessee calculations
Lessee accounting:Two approaches to income statement recognition
