THE NEW LEASE STANDARD: NAVIGATING ASU 2016-02 IMPLEMENTATION IN 2022
Steven C. Fustolo, CPA
CPE: 4 CPEs (2 Accounting, 2 Auditing)
Tuesday, March 28, 2023 1:00pm - 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.
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.
- 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.
Recommended CPEs: 4 hours
Field of study: Accounting (2 CPEs) and Auditing (2 CPEs)
Level of knowledge: Update
Prerequisites: General understanding of accounting, financial reporting, auditing and compilation and review standards recommended
Advance Preparation: None, but registrants are encouraged to review the handout material before participating in the live video conference Instructional
Method: Group Internet Based
Credits: 4.0 (Qualifies for Registry CPE credit based on a 50-minute per CPE hour measurement.)