Accounting for Leases: The New Standard (10 hrs)

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Course Description

Accounting for Leases: The New Standard – ASU 2016-02 and Other Amendments

The purpose of this course is to review the changes made to lease accounting by ASU 2016-02, Leases, (as further amended by ASU 2018-01, Land Easement- Practical Expedient for Transition to Topic 842), and numerous other amendments, and to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Topics include a review of the new rules for lessees and lessors, the types of leases, how to account for the balance sheet, income statement and cash flows statement impacts of different types of leases, the implementation requirements, and more.

The course also addresses newly issued ASU 2023-01, Leases (Topic 842)- Common Control Arrangements, addressing the application of the lease standard to common control arrangements.

Course information

Price: $88

This course is included in our Accounting and Auditing CPE Bundle

Course No. F110
Format: Online pdf (309 pages). Printed book available.
Purchase the optional printed book: Book Only
Instructional Delivery Method: QAS Self-Study
Prerequisites: Basic understanding of U.S. GAAP and existing lease accounting
Advance Preparation:None
Level: Overview
CPE Credit: 10 hrs.
Field of Study: Accounting: Technical
Course expiration:  You have one year from date of purchase to complete the course.
Course Revision Date: November 2023


After reading the course material, you will be able to:

  • Recognize a key change made to GAAP by the new lease standard
  • Identify a type of lease that exists for a lessee under ASU 2016-02
  • Recall a type of lease for which the ASU 2016-02 rules do not apply
  • Recognize some of the criteria that determine whether a contract is or is not a lease
  • Identify some of the types of economic benefits a lessee can obtain from a leased asset
  • Recognize a right that ASU 2016-02 states does not prevent a lessee from having the right to direct use of an identified asset
  • Identify a threshold for a lease term to be considered a major part of an asset’s remaining economic life
  • Recognize who an entity might not want to use the risk-free rate to compute the present value of lease payments
  • Identify how a lessee should account for initial direct costs
  • Recognize items that are and are not components of a lease term
  • Identify how an entity accounts for a common control lease arrangement under ASU 2023-01
  • Recall the method a lessee should use to record interest expense on a lease obligation
  • Identify types of leases for a lessor
  • Recognize the rate that a lessor should use in performing the 90% test for a direct financing lease
  • Recall how a lessor should initially account for initial direct costsfor a lease in certain instances
  • Identify how a lessor should account for lease payments received on the income statement for an operating lease
  • Recall how a lessor should classify certain cash receipts on the statement of cash flows
  • Recognize how certain existing leases are accounted for on the implementation of ASU 2016-02
  • Identify how deferred income taxes will be treated for lessees under ASU 2016-02
  • Recall the potential impact that the new lease standard might have on a lessee’s EBITDA and debt-equity ratios, and
  • Recall the IRS rules as when an entity should and should not capitalize a lease for tax purposes.

Ratings and Reviews

Avg. Rating
6 Ratings
What's your experience? We'd love to know!
James Campbell
Posted 7 days ago
Made leases easy to understand

An easy read and well arranged text.

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Ranran Wang
Posted 6 months ago
enjoy the course and learning material.

enjoy the course and learning material.

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Syamaladevi Prasad Duggirala
Posted 9 months ago
Well Presented

The course content is well presented

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Jeffrey swafford
Posted 2 years ago

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John Payne
Posted 4 years ago
Course #F110-19 Accounting for Leases

This course was good in that it clearly explained the treatment of the various types of leases and upcoming changes for accounting treatment and impact on the balance sheet of these changes.

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Diane Jennings
Posted 5 years ago
A very good reference document

I thought this course covered everything well. The only reason I gave it 4 stars versus 5 was that the author included his opinion in a few places. For a training course, I don't think these opinions should have been included.

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