Lease Accounting - ASC 842

Name: Lease Accounting - ASC 842
Rating: 4.4 (225 reviews)

Classification, Accounting and Transition of Lease

Created byPranay Kumar Chatakonda

Last updated 5/2020

English

What you'll learn

1. Understanding of lease - ASC 842 (Including exclusions and exemptions)
2. How to classify a lease?
3. Overview of lease accounting in the books of lessee
4. Calculation of Right of use asset, lease liability, initial direct costs and Lease advance payments
5. Accounting treatment for sales tax involved in lease payments.
6. Presentation of items in balance sheet, Income statement and Cash Flow
7. Finance lease example - Preparation of schedules for Right of use asset and lease liability, Journal entries and ledger impact
8. Operating lease example - Preparation of schedules for Right of use asset and lease liability, Journal entries and ledger impact
9. Comparison of Finance lease and Operating lease based on above examples
10. Transition from ASC 840 to ASC 842, Transition methods , Practical expedients and Effective dates
11. Practical example on how to do transition from ASC 840 to ASC 842, Deferred rent, Preparation of schedules for Right of use asset and lease liability, Journal entries and ledger impact
12. Major differences from ASC 840 to ASC 842

Course content

1 section • 9 lectures • 2h 4m total length

Introduction3:11
Brief intro about lease, Exclusions from ASC 842, Exemptions and Some basic info
Basic understanding of lease - ASC 8424:56
Lease definition, Exemptions and Exclusions
Basic understanding of lease - ASC 842
Classification of lease7:47
Understanding Finance lease, Direct Financing lease and Operating lease.
Classification of lease
Overview of lease accounting in the books29:21
Understanding the terms Right of use asset, Lease Liability, accounting for sales tax, Lease advance payments and entire overview of accounting for lessee
Overview of lease accounting in the books of lessee
Presentation in BS and P&L4:20
Presentation of all lease related items in Balance sheet and Income statement.
Finance lease example - Excel working32:04
Preparation of all lease schedules and journal entries in excel for finance lease.
Operating lease example - Excel working17:49
Preparation of all lease schedules and journal entries for Operating lease
Transition from ASC 840 to ASC 842 along with example - Excel working22:01
Transition from ASC 840 to ASC 842, Practical expedients and excel working of example.
Major differences from ASC 840 to ASC 8422:37
Major differences from ASC 840 to ASC 842

Requirements

Any person with basic accounting knowledge

Description

This course is all about the standard ASC 842 (US GAAP). In this course we covered about the basic understanding of lease, classification of lease, accounting of lease with practical examples in excel in the books of lessee, Transition from ASC 840 to ASC 842 along with example in excel and finally we covered the major differences from ASC 840 to ASC 842.

Who this course is for:

Accounting graduates, CPA, Accountants, CA, ICAEW, CWA, CMA, MBA