Table
of Contents
Chapter 1 - Accounting for the New Lease Standard -
ASU 2016-02 - Section 1.................................. 9
I. Background................................................................................................................................. 9
II. Basic Concepts of ASU 2016-02............................................................................................. 12
A. General Rules........................................................................................................................ 12
Chapter 1 - Section
1 Review Questions................................................................................................ 19
Chapter 1 -
Accounting for the New Lease Standard - ASU 2016-02 - Section 2................................ 20
III. Introduction............................................................................................................................... 20
IV. Definitions used in ASU 2016-02............................................................................................. 20
V. Scope and Scope Exceptions.................................................................................................... 23
VI. Identifying a Lease.................................................................................................................... 23
Chapter 1 - Section
2 Review Questions................................................................................................ 52
Chapter 1 -
Accounting for the New Lease Standard - ASU 2016-02 - Section 3................................ 54
VII. Lessee Rules.............................................................................................................................. 54
A. Lease Classification - Lessee................................................................................................ 54
B. Initial Measurement of Lease- Lessee.................................................................................. 65
C. Lease Modifications - Lessee............................................................................................... 73
D. Lease Payments - Lessee...................................................................................................... 78
E. Lease Term and Purchase Options- Lessee.......................................................................... 86
F. Subsequent Reassessment of Lease Elements- Lessee......................................................... 90
G. Short-Term Leases - Lessee................................................................................................. 94
H. Subsequent Measurement and Accounting for Leases-
Lessee........................................... 97
I. Other Recognition and Measurement Issues- Lessees........................................................... 103
J. Financial Statement Presentation Matters- Lessee................................................................. 108
K. Disclosures by Lessees....................................................................................................... 110
Chapter 1 - Section
3 Review Questions.............................................................................................. 134
Chapter 1 -
Accounting for the New Lease Standard - ASU 2016-02 - Section 4.............................. 136
VIII. Lessor Rules............................................................................................................................. 136
A. Lease Classification............................................................................................................ 136
B. Accounting for Sales-Type Lease- Lessor.......................................................................... 143
C. Accounting for a Direct Financing Lease........................................................................... 150
D. Accounting for Operating Leases- Lessor.......................................................................... 154
E. Disclosure- Lessor Leases................................................................................................... 161
Chapter 1 - Section
4 Review Questions.............................................................................................. 164
Chapter 1 -
Accounting for the New Lease Standard - ASU 2016-02 - Section 5.............................. 166
IX. Transition and Effective Date Information............................................................................. 166
A. General- Existing Leases..................................................................................................... 166
B. Transition............................................................................................................................ 166
X. Leases: Sale and Leaseback Transactions................................................................................ 175
XI. Leases: Leveraged Lease Arrangements.................................................................................. 178
Chapter 1 - Section
5 Review Questions.............................................................................................. 179
Chapter 1 -
Accounting for the New Lease Standard - ASU 2016-02 - Section 6.............................. 180
XII. Impact of Changes to Lease Accounting................................................................................ 180
XIII. Impact of Lease Changes on Nonpublic
Entities.................................................................... 188
XIV. Other Considerations- Dealing with
Financial Covenants...................................................... 190
XV. Avoiding the New Lease Standard......................................................................................... 192
Chapter 1 - Section
6 Review Questions.............................................................................................. 201
Suggested Solutions.............................................................................................................................. 203
Glossary............................................................................................................................................. 223
Final Examination................................................................................................................................. 228
CPASelfstudy.com
Course Evaluation................................................................................................. 236