Overview

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Build practical lease accounting skills to classify, measure, and analyze leases under ASC 842 and IFRS 16. You’ll begin with lease definitions, advantages and disadvantages, lease-versus-rent distinctions, key terminology, and operating lease treatment. Through structured formulas and numerical examples, you’ll calculate lease-related amounts and interpret their financial impact. As you progress, you’ll examine finance leases from the lessee’s perspective and evaluate sales-type and direct financing leases from the lessor’s perspective. You’ll apply revenue recognition, asset derecognition, and net investment principles before exploring the ASC 842 framework in greater depth. Practical exercises will help you determine lease terms and fixed payments, classify leases, and perform present value analysis. In the final stage, you’ll work through advanced lessor scenarios, assess impairment triggers, remeasure lease liabilities when assumptions change, and compare ASC 842 with IFRS 16 for global reporting. Designed for learners preparing for accounting roles and professionals involved in audit preparation, compliance reporting, or financial analysis, this course combines conceptual clarity with step-by-step calculations and applied problem solving. Its coverage of both lessee and lessor accounting helps you confidently interpret standards and perform accurate lease calculations in real-world scenarios.

Syllabus

Foundations of Modern Lease Accounting
- This module introduces the foundational concepts of lease accounting, covering lease definitions, advantages and disadvantages, distinctions between lease and rent, and the key terminology essential for understanding modern leasing practices. Learners also explore operating leases and apply concepts through practical calculation examples to build confidence in real-world scenarios.
Finance Leases & Lessor Accounting
- This module deepens the learner’s understanding of finance leases, including their defining characteristics and accounting treatment from the lessee’s perspective. It also shifts to the lessor viewpoint, exploring sales-type leases, direct financing leases, and the revenue recognition principles that guide lessor accounting under modern standards.
US GAAP Lease Accounting Framework (ASC 842)
- This module focuses on ASC 842, the US GAAP standard governing lease accounting. Learners explore the updated lease definition, classification model, lease term determination, fixed payments, and practical classification exercises. The module reinforces technical accuracy through progressively applied problem sets.
Advanced Topics: Lessor Perspective, Impairment & Global Standards
- This module explores advanced lease accounting topics, including complex lessor scenarios, impairment of lease-related assets, re-measurement requirements, and a comparative analysis of ASC 842 and IFRS 16. Learners gain a global perspective and learn how to reassess lease balances based on updated assumptions or standards.