PrerequisitesFamiliarity with US GAAP financial statements
Attendance requirementNo
Field of studyAccounting
Private companies are now several reporting cycles into ASC 842, and the recurring problems are operational rather than conceptual: incomplete lease populations, discount rate support, and modifications that were never remeasured.
This session works through identification, classification, measurement and disclosure using the schedules a private company finance team can maintain without specialist software.
Major topics covered
Identifying a lease within a contract.
Classification and the practical expedients.
Initial and subsequent measurement.
Modifications, remeasurement and disclosure.
After completing this session you will be able to:
01Identify whether a contract contains a lease under the ASC 842 control model.
02Apply the classification criteria that separate finance from operating leases.
03Compute the initial right-of-use asset and lease liability, including the discount rate election available to private companies.
04Explain the events that trigger remeasurement and the disclosures a private company must present.
Topics covered in this session:
Scope, the control model and embedded leases in service contracts
Short-term lease and other practical expedients available on adoption
Lease and non-lease component separation
Discount rate selection and the risk-free rate election
Initial measurement of the right-of-use asset and lease liability
Subsequent measurement, modifications and remeasurement triggers
Presentation and the qualitative and quantitative disclosure package
Common findings raised in review and audit
Recommended NASBA CPE credit
2.5
Recommended field of study
Accounting
Session prerequisites
Familiarity with US GAAP financial statements
Session learning level
Intermediate
Location
Virtual / Online
Delivery method
QAS Self Study
Attendance requirement
No
Session duration
150 minutes
LFLynn FountainGovernance and Internal Audit Consultant - Overland Park, KS
CPACGMACRMA
Lynn works with private companies on financial reporting, internal control and governance. She teaches accounting standards implementation with an emphasis on what small finance teams can realistically operate.