Lease Accounting Essentials for Finance Professionals

About Lease Accounting Essentials for Finance Professionals

In this course, students will explore the complex world of lease accounting, learning how to apply accounting principles to various types of leases, including operating leases, financial leases, and sales-type leases. The course covers both theoretical knowledge and practical examples to ensure that learners can effectively manage lease transactions under different accounting frameworks, including US GAAP and IFRS. This course is designed for finance and accounting professionals who wish to deepen their expertise in lease accounting, as well as students looking to enter the field of accounting and finance.

Section 1: Introduction This section introduces students to the concept of lease accounting, its importance in financial reporting, and the fundamentals of lease transactions. It begins with an overview of lease accounting principles, setting the foundation for more advanced topics covered later in the course. Learners will also get an insight into the global accounting standards that govern lease transactions, ensuring they are equipped to handle leases in compliance with the relevant regulations.

Section 2: Advantages and Disadvantages In this section, students will examine the advantages and disadvantages of leasing compared to other forms of financing. They will learn how leases can benefit businesses, such as by improving cash flow and providing flexibility. On the flip side, the course will also cover the disadvantages, such as the long-term financial commitments and the complexity of accounting for leases. This section helps students understand when leasing is the best option for companies and its implications on financial statements.

Section 3: Lease and Terms This section differentiates between leases and rents, clarifying common misconceptions. Students will gain a deep understanding of the terms used in lease accounting, such as lease agreements, payments, and duration. This section is crucial for understanding how lease terms affect the classification and accounting of leases under various accounting standards.

Section 4: Operating Leases In this section, students will dive into the specifics of operating leases, learning how to recognize, classify, and account for operating leases. The lectures cover the definition, structure, and reporting requirements of operating leases, as well as how these leases are reflected in financial statements.

Section 5: Accounting for Operating Lease This section focuses on the detailed accounting treatment for operating leases, providing students with practical examples and exercises. Learners will practice recognizing and reporting operating lease transactions from both the lessee's and lessor's perspectives. They will also be introduced to finance leases, including how to account for these leases under various scenarios.

Section 6: Lease Accounting Under US GAAP In this section, students will explore the intricacies of lease accounting under US GAAP, with a special focus on ASC 842. The section covers key topics such as the new definition of leases, lease classification, lease terms, and fixed payments. Students will learn to apply the US GAAP standards to different lease transactions, preparing them for real-world scenarios. Comparisons with IFRS will also be discussed to give a global perspective on lease accounting.

Section 7: Working with Lease Examples In this section, students will apply their knowledge to real-life examples, learning how to account for both operating and finance leases in various business contexts. Through these exercises, learners will enhance their skills in working with complex lease transactions, helping them to confidently apply lease accounting in practice.

Conclusion:

By the end of this course, students will have a thorough understanding of lease accounting principles, practices, and the application of accounting standards such as US GAAP and IFRS. They will be equipped with the knowledge to manage lease transactions effectively, ensuring accurate financial reporting and compliance. Whether you are an aspiring accountant or an experienced professional, this course will provide the expertise needed to master lease accounting.