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Lease Accounting: How It Affects Your Business and Preparing for Compliance, by Lorman

Lease Accounting: How It Affects Your Business and Preparing for Compliance is brought to you by Lorman

Explore the actions necessary to communicate with management about ASC 842 Accounting for Leases.

Lease accounting activity is heating up, and financial professionals are strategically involved in their companies more than ever before. Financial professionals have the opportunity to raise the bar to deliver value, including information, objectivity, and foresight. This topic will explore the actions necessary to prepare your communication with management regarding ASC 842 Accounting for Leases. This information will assist you in understanding not only the standard but the implementation process related to the standard. This material will help prepare individuals to add value as potential partners to organizations related to the implementation of the new lease guidance. Your ability to utilize these skills in the workplace will make you a valuable asset to the leadership team in your organization. The Financial Accounting Standards Board (FASB) issued the new Lease Accounting standards to increase transparency and comparability among entities by recognizing leases on the balance sheet. The new lease accounting standards will also provide more information about leasing arrangements so that users of financial statements (i.e., management, bankers, investors, etc.) can assess the amount, timing, and uncertainty of cash flows from leases. These large, leased assets (and liabilities), once hidden in the footnotes, will now be placed directly on the balance sheet. Generally, financial statement users are applauding the FASB for requiring more transparency for management and investors.

Learning Objectives

  • You will be able to identify the characteristics and purpose of ASC 842
  • You will be able to recognize timing and deadlines of ASC 842
  • You will be able to identify reasonable approaches for applying the new lease classification.
  • You will be able to distinguish between balance sheet and income statement classifications.

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