Accounting for the New Lease Standard-2023Code: 25-LEASESTD8

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 
•          Identify some of the types of benefits a lessee can obtain from a leased 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
•          Recall the method a lessee should use to record interest expense on a lease obligation
•          Identify some types of leases for a lessor
•          Recall how a lessor should initially account for initial direct costs for 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 date 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.