Lease Accounting (asc 842/ifrs 16): Mastering Lease Compliance

Introduction:

Lease accounting has undergone significant changes with the introduction of ASC 842 and IFRS 16, requiring organizations to implement and manage new lease accounting requirements. This comprehensive training course equips participants with the specialized knowledge and skills to navigate these standards effectively. Participants will learn how to identify and account for leases, understand the impact on financial statements, and ensure compliance with evolving regulations. This course bridges the gap between complex accounting standards and practical implementation, empowering professionals to drive accuracy and transparency.

Target Audience:

This course is designed for financial professionals involved in lease accounting, including:

• Accountants
• Financial Analysts
• Auditors
• Controllers
• Lease Administrators
• Anyone responsible for financial reporting and lease management

Course Objectives:

Upon completion of this Lease Accounting (ASC 842/IFRS 16) training course, participants will be able to:

• Understand the principles and requirements of ASC 842 and IFRS 16.
• Identify and classify leases according to the new standards.
• Recognize and measure lease liabilities and right-of-use (ROU) assets.
• Understand the impact of lease modifications and reassessments.
• Apply practical examples and case studies to real-world scenarios.
• Understand the disclosure requirements for lease accounting.
• Analyze the impact of lease accounting on financial statements.
• Ensure compliance with evolving lease accounting standards.
• Enhance their ability to interpret and apply complex accounting principles.
• Improve their efficiency and accuracy in lease accounting.
• Contribute to improved financial reporting and transparency.
• Stay up-to-date with the latest interpretations and guidance on lease accounting.
• Become a more valuable and sought-after lease accounting expert.
• Understand ethical considerations in lease accounting.
• Learn how to use lease accounting software and tools effectively.

DURATION

10 Days

COURSE CONTENT

Module 1: Introduction to Lease Accounting and Standards

• Overview of the evolution of lease accounting.
• Understanding the objectives and key changes of ASC 842 and IFRS 16.
• Key definitions: lease, lease term, lease payments, discount rate.
• The impact of the new standards on financial statements.
• Ethical considerations in lease accounting.

Module 2: Identifying and Classifying Leases

• Determining whether a contract contains a lease.
• Identifying the lease component and non-lease components.
• Understanding the concept of control transfer.
• Classifying leases as finance or operating leases (lessee perspective).
• Practical examples and case studies.

Module 3: Initial Recognition and Measurement (Lessee)

• Recognizing right-of-use (ROU) assets and lease liabilities.
• Determining initial measurement of lease liabilities.
• Calculating initial measurement of ROU assets.
• Understanding initial direct costs.
• Practical examples and case studies.

Module 4: Subsequent Measurement (Lessee)

• Accounting for lease payments and interest expense.
• Depreciating ROU assets.
• Understanding lease remeasurement events.
• Accounting for lease modifications.
• Practical examples and case studies.

Module 5: Lessor Accounting (ASC 842 and IFRS 16)

• Classifying leases from a lessor perspective (finance, operating, sales-type).
• Accounting for sales-type leases.
• Accounting for finance leases (lessor).
• Accounting for operating leases (lessor).
• Practical examples and case studies.

Module 6: Lease Modifications and Reassessments

• Understanding the accounting for lease modifications.
• Analyzing changes in lease terms and lease payments.
• Accounting for partial and full lease terminations.
• Understanding lease reassessment events.
• Practical examples and case studies.

Module 7: Discount Rate Determination

• Understanding the importance of the discount rate.
• Determining the appropriate discount rate for lessees.
• Using the incremental borrowing rate.
• Practical considerations and challenges.
• Impact of changes in discount rates.

Module 8: Short-Term Leases and Low-Value Asset Leases

• Understanding the recognition exemptions for short-term leases.
• Accounting for low-value asset leases.
• Practical considerations and applications.
• Impact on financial statements.

Module 9: Subleases and Sale and Leaseback Transactions

• Understanding the accounting for subleases.
• Analyzing sale and leaseback transactions.
• Determining the appropriate accounting treatment.
• Practical considerations and complexities.
• Impact on financial statements.

Module 10: Disclosure Requirements (ASC 842 and IFRS 16)

• Understanding the disclosure requirements for lessees.
• Understanding the disclosure requirements for lessors.
• Preparing comprehensive lease disclosures.
• Analyzing the impact of disclosures on financial statement users.
• Practical examples and case studies.

Module 11: Transition and Implementation Challenges

• Understanding the challenges of transitioning to ASC 842 and IFRS 16.
• Developing effective transition plans.
• Analyzing the impact on systems, processes, and controls.
• Practical guidance on implementation and change management.
• Addressing common implementation issues.

Module 12: Lease Accounting and Technology

• The role of technology in lease accounting compliance.
• Using lease accounting software and tools.
• Analyzing the impact of data analytics and automation.
• Understanding the implications of cloud-based solutions.
• Exploring the future of technology in lease accounting.

Module 13: Auditing Lease Accounting

• Understanding the auditor's perspective on lease accounting.
• Analyzing key audit risks and control considerations.
• Developing effective audit procedures for lease accounting.
• Understanding the role of professional skepticism.
• Practical guidance on auditing complex lease arrangements.

Module 14: Industry-Specific Applications and Considerations

• Analyzing lease accounting applications in specific industries (e.g., retail, airlines, real estate).
• Understanding industry-specific challenges and solutions.
• Impact of changes on financial reporting in particular sectors.
• Case studies and practical applications for different industries.

Module 15: Advanced Topics and Case Studies

• Analyzing complex case studies related to lease accounting.
• Applying advanced techniques for dealing with complex lease arrangements.
• Understanding the impact of lease accounting on financial metrics.
• Exploring emerging trends and developments in lease accounting.
• The future of lease accounting and continuous learning.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.