Webinars

Steven C. Fustolo, CPA

CPE: 4 CPEs (2 Accounting, 2 Auditing)

Tuesday, December 20, 2022
1:00-4:30pm Eastern Time (US and Canada)

DON’T MISS THIS COURSE!

THE NEW LEASE STANDARD IN ASU 2016-02 MUST BE IMPLEMENTED STARTING JANUARY 1, 2022 AND NON-PUBLIC COMPANIES CANNOT ESCAPE IT. ARE YOU READY?

This course is critical for any CPA who prepares non-public company financial statements.

Effective January 1, 2022, GAAP requires companies to implement the new lease standard by recording lease assets and liabilities on balance sheets for all leases with a lease term of more than 12 months.

The new lease standard will be a key focus of peer reviews in 2022 and 2023.

This course is a hands-on course that shows you how to implement the standard with numerous examples and a case study.

Objective:

The objective of this course is to address the new lease standard in ASU 2016-02 (ASC 842) and its implementation requirements for non-public entities.

Topics Include:

• Recognize the key changes made to GAAP by the new lease standard in ASU 2016-02 (ASC 842) starting in 2022
• Identify the types of leases that exist for lessees and lessors
• Understand the short-term lease exclusion and how it can be used for related-party leases
• Learn the criteria that determine whether a contract is or is not a lease including the special “substitution loophole” under which a lease is not a lease for GAAP
• Discuss the elements used in the lease liability computation including the discount rate, lease term and lease payments
• Learn the impact that options to purchase and lease extensions have on the lease obligation computation
• Recognize the types of interest rates that may be used as the discount rate in the lease computation
• Identify how a lessee should account for initial direct costs
• Learn how lease payments, CAM charges and real estate taxes/insurance reimbursements are accounted for in the lease computation
• Discuss the financial statement presentation of lease elements by lessees
• Review the disclosures required by the lease standard
• Address how a lessee records interest and amortization expense on finance and operating leases
• Identify the types of leases for a lessor and how each is accounted for
• Learn how existing leases are accounted for on the implementation date, including the practical expedients available
• Identify how deferred income taxes are treated for lessees under ASU 2016-02
• Address the potential impact that the new lease standard might have on a lessee’s EBITDA and loan covenants including debt-equity ratios
• Discuss strategies to avoid the new lease standard using a GAAP exception, tax-basis financial statements, and other approaches, and more.

In this course, the author will review a detailed case study demonstrating how to implement the standard and prepare the required disclosures.