Many U.S. companies have become heavily involved in leasing assets rather than owning them. For example, according to the Equipment Leasing Association (ELA), the global equipment-leasing market is a $1 trillion 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 equipment, 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 lessors. It includes a discussion of sale-leasebacks, subleases, renewals and extensions, terminations, leveraged leases, and other issues.

Learning Objectives:
I. Recognize the advantages and disadvantages of leasing.
II. Recognize the most material difference between ASC 842 and current practice.
III. Differentiate between the operating and capital lease method.
IV. Distinguish between operating, direct financing, and sales-type method.
V. Recognize the key terms and costs included when accounting for leases.
VI. Compute leased asset and depreciation expense entries.
VII. Recognize differences between GAAP and IFRS when accounting for leases.

Instructional Method: Self Study
Review Date: 06/14/2016

Required Components: Written Materials
CPE Final Exam Required Passage Grade: 70%
Please Note: This course must be completed within 1 year of date of receipt of this course for CPE credit.

Field of Study: Accounting
Level of Knowledge: Basic to Intermediate
Prerequisite: Basic Accounting
Advanced Preparation: None

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FurtherEd is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Accounting for Leases - 2016 (Text-Based)

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