Accounting for Leases

Course Description:

Many U.S. companies have become heavily involved in leasing assets rather than owning them. For example, according to the Equipment Association (ELA), the global equipment-leasing market is a $600-$700 billion dollar business, with the U.S. accounting for about one-third of the global market. Any type of equipment can be leased, such as railcars, helicopters, bulldozers, barges, CT scanners, computers, and so on. The largest group of leased equipment involves information technology, followed by assets in the transportation area (trucks, aircraft, rail), and then construction and agriculture. This course discusses the accounting, reporting, and disclosures of leases by lessees and the lessor. It includes a discussion of sale-leasebacks, subleases, renewals and extensions, terminations, leveraged leases, and other issues.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Differentiate between the operating and capital lease method
• Distinguish between operating, direct financing, and sales-type method
• Determine the salvage (residual) value of leased property
• Account for modifications and terminations
• List the disclosure requirement for leases
• State IFRS differences