Lease Accounting – ASC 842

Classification, Accounting and Transition of Lease

Created by: Pranay Kumar Chatakonda
CA, ACCA, B.com

What Will I Learn?

• 1. Understanding of lease - ASC 842 (Including exclusions and exemptions)
• 2. How to classify a lease?
• 3. Overview of lease accounting in the books of lessee
• 4. Calculation of Right of use asset, lease liability, initial direct costs and Lease advance payments
• 5. Accounting treatment for sales tax involved in lease payments.
• 6. Presentation of items in balance sheet, Income statement and Cash Flow
• 7. Finance lease example - Preparation of schedules for Right of use asset and lease liability, Journal entries and ledger impact
• 8. Operating lease example - Preparation of schedules for Right of use asset and lease liability, Journal entries and ledger impact
• 9. Comparison of Finance lease and Operating lease based on above examples
• 10. Transition from ASC 840 to ASC 842, Transition methods , Practical expedients and Effective dates
• 11. Practical example on how to do transition from ASC 840 to ASC 842, Deferred rent, Preparation of schedules for Right of use asset and lease liability, Journal entries and ledger impact
• 12. Major differences from ASC 840 to ASC 842

Requirements

• Any person with basic accounting knowledge

Target audience

• Accounting graduates, CPA, Accountants, CA, ICAEW, CWA, CMA, MBA