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 leases
to capitalization will affect companies of all sizes
Learn how the
balance sheet treatment of leases will alter financial statement
numbers, ratios and loan covenants
Understand how lease contingencies
are incorporated into the lessee’s calculations of assets and
obligations
Study the proposed receivables and residual approach to
lessor accounting
Gain insights into how companies can implement the
lease standard in a cost effective manner
Learn how OCBOA (cash and
tax basis accounting) may provide smaller companies with a more cost
effective approach to presentation
Understand the fundamental
principles of the contract- based approach to revenue recognition
developed by FASB and IASB
Learn how to analyze contracts and account
for them in terms of their performance obligations
Study how basic
guidance is interpreted in more complex transactions using extensive
implementation examples.
Understand how the new approach to revenue
will affect companies in a variety of industries
The multiple
deliverables issue and its effect on revenue and cost calculations.
Learn how the percent of completion approach may be altered by the
revised accounting model
Major Topics
The asset-based approach to revenue recognition
Analyzing contacts
and performance obligations
Identifying and satisfying performance
obligations
More complex transactions – an examples-based approach
Continuous delivery and percent of completion
Multiple deliverables
and contract separation
Contract costs and onerous obligations.
Disclosures – a different approach
Lease recognition today; capital
versus operating
The asset liability approach and its effect on the
balance sheet
Incorporating contractual contingencies concerning lease
term and lease payments into lessee calculations
Lessee accounting:
Two approaches to income statement recognition
