Halloween is just around the corner, so it seems appropriate to draw upon one of my most beloved holidays as inspiration for this week’s blog! After several delays, the effective date (or should I say, the witching hour?) for ASC 842, Leases, for private companies is nearly here.
As luck would have it, we are offering a special potion at the end of this month! Our next quarterly webinar will cover what private companies need to know to set lease implementation projects up for success. This blog will call upon famous witches and wizards to walk through what we plan to unveil during this learning session as well as other potions we currently offer in our eLearning spell book!
So, what’s first on the agenda? After providing an introduction, we will get into the lease model. I can just hear Mary from the Sanderson Sisters proclaiming, “I smell…. leases!”, and by the end of this section, you will too! We will review the definition and scope of ASC 842. Then, just like Winifred, we will summon the [FASB] book (boo-ook!?!) to learn about the different ingredients that comprise the lease liability! We will review how to identify the lease term, lease payments, as well as the discount rate.
It would be wise to heed Jafar’s warning, “trust me, you’ll get what’s coming to you!” when you begin recognizing leases under ASC 842. While it may seem a tad daunting, fear not! We plan to walk through initial accounting considerations, such as how to navigate certain direct costs that arise at lease commencement, prepaid lease payments, and lease incentives! We will also review classification and measurement considerations for finance and operating leases.
Don’t succumb to Ursula’s tactics! There are no “poor unfortunate souls” when it comes to accounting for changes to lease arrangements after the commencement date, especially if you join us for the webinar. You will learn about how (and when!) to reassess key estimates and judgments, how to determine the remeasurement date, how to account for lease terminations, as well as how to account for lease modifications.
Maleficent, your poetic commentary on the passage of time is most appropriate for FASB’s lease project: “but [15 years] to a steadfast heart are but a day!”. Yes, you read that correctly – by the time private companies implement the provisions of ASC 842, it will have been nearly 15 years since the FASB and IASB initiated a joint project on leases. We will end the webinar by discussing transition considerations as well as providing you with some lessons learned from public companies during their initial implementation efforts.
We hope you join us for a great themed webinar. Who knows, maybe you will have one of these famous witches as your facilitator!
Want to get a head start on lease accounting in advance of the webinar? As mentioned previously, if you need other eLearning potions, you are in luck! Christine wrote a great blog summarizing what you need to know about ASC 842! Christine also provided an introduction to our eLearning courses on the Revolution, that are also linked below:
- Overview of ASC 842: This comprehensive 2.0 hour CPE eLearning course will give you a comprehensive overview of ASC 842 for both lessors and lessees.
- Lessee Accounting Explained: This 1.5 hour CPE will walk you through ASC 842 from a lessee’s perspective and includes interactive examples to reinforce key concepts.
- Lessor Accounting Explained: This 1.5 hour CPE will walk you through ASC 842 from a lessor’s perspective for sales-type, direct financing and operating leases.
- Changes After the Commencement Date: This 1.0 hour CPE will walk through accounting considerations for lease modifications and terminations for both lessees and lessors.
Purchase all four of the above courses in our Leases Collection and receive a spooktacular discount!
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