Accounting for Leases

Highlights

Introduction and Basic Terminology, Lease Classification, Lessee Accounting - Initial Measurement, Lessee Accounting for Finance Leases - Subsequent Measurement, Lessee Accounting for Operating Leases - Subsequent Measurement, Lessor - Initial Accounting for Sales-Type Leases, Lessor - Subsequent Accounting for Sales-Type Leases, Lessor Accounting for Operating and Direct Financing Leases, Sale and Leaseback Transactions

Prerequisites

None

Objectives

After completing this course, you will be able to (1) define lease terminology, (2) apply the lease classification criteria to classify the lease by the lessor and the lessee, (3) measure the lease liability and right-of-use asset at lease commencement and subsequently, (4) calculate the relevant expenses recognized by the lessee for finance and operating leases, (5) identify the major differences between U.S. GAAP and IFRS in relation to accounting for leases, (6) determine lessor accounting for sales-type and other leases, (7) calculate the lessor’s selling profit or loss on the lease, (8) account for sale and leaseback transactions, and (9) present leases in the financial statements.