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The New Lease Accounting Standards

3.8 (8)

Kelen Camehl, CPA (US), MBA

Kelen Camehl CPA

  • CMA
  • CPA (US)
  • CGMA

Published: March, 2021

Before starting this self study program, please go through the instructional document.


  • Introduction to New Lease Accounting Standards
  • Illustrative Examples – Determining Whether a Contract Contains a Lease
  • Lessee Lease Classification
  • Lease Modifications
  • Assets under Construction
  • Presentation Requirements
  • Disclosure Requirements
  • IFRS Differences

Course Description

n February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (ASC 842), which will replace the prior lease guidance in 2019 by providing new requirements of financial accounting and reporting for lessees and lessors. This new standard represents the first comprehensive overhaul of lease accounting since FAS 13 was issued in 1976. The new guidance will affect entities across all industries because most companies enter into contracts that contain leases to support their business operations. Lessees will likely see the most significant changes as they are required to recognize substantially all leases on their balance sheets with a corresponding right-of-use asset. While lessor accounting remains similar to previous guidance in most respects, there are some important changes. For example, certain principles of the lessor model are updated to align with changes to the lessee model and the new revenue recognition standard (ASC 606).

To minimize disruptive missteps and costly noncompliance, entities need to take a timely and thorough approach. This course is designed to help you navigate the complexities of this standard, identify the implications of it, and prepare for transition and implementation. It provides a working knowledge of the fundamentals of lease standard that can be applied, regardless of the company size, in the real world. 

Learning Objectives

  • To recognize how the new leasing standard has evolved and how the new standard is organized
  • To determine whether an arrangement contains a lease
  • To identify considerations with respect to substitution rights and decision-making rights
  • To identify the criteria for the new finance lease and short-term leases
  • To recognize the new recognition and measurement requirements for both lessees and lessors

Who Should Attend?

  • Accountant