Lease Accounting Deep Dive - Unlocking the Key Principles of ASC 842 (Course Id 2530)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs, accountants, and professionals seeking a deep understanding of lease accounting under ASC 842.

• What is this course about or what problem does this course solve?
  The course provides a detailed exploration of ASC 842 lease accounting standards, addressing how to identify leases, classify them, and understand the rules for measurement, presentation, and disclosure.

• How can the knowledge from this course be used?
  Learners can apply the knowledge to accurately account for leases, assess lease classification, handle lease modifications, and ensure compliance with ASC 842 for both lessees and lessors.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding ASC 842 is critical for financial reporting accuracy, and this course equips professionals with the technical skills needed to navigate complex lease accounting requirements.

• When is this course relevant or timely?
  As the course was released in 2025 and covers the current lease accounting standards, it is highly relevant for professionals needing to stay up to date with the latest regulations and reporting practices.

• How is a course like this consumed or used?
  This self-study course is delivered in a NASBA QAS text-based format, requiring participants to read the material, complete review questions, and pass a final exam to earn CPE credit.

This course provides an in-depth overview of the lease accounting standards prescribed by ASC 842.  This includes a discussion of how to identify a lease within a contract and how to classify a lease.  This course also provides an in-depth review of the initial measurement, subsequent measurement, and presentation & disclosure of leases. 

NASBA QAS - Text - NASBA Registry - 2530

Course Learning Objectives

• Determine whether an arrangement contains a lease
• Identify considerations with respect to substitution rights and decision-making rights
• Identify the criteria for finance lease and short-term leases
• Recognize the recognition and measurement requirements for both lessees and lessors
• Identify the recognition criteria for sales-type, direct financing, and operating leases
• Identify the overall requirements with respect to lease modifications
• Identify the criteria used for sale and leaseback transactions
• Identify the presentation requirements for both lessees and lessors
• Recognize both qualitative and quantitative disclosure requirements for both lessees and lessors
• Recognize considerations of and alternatives provided to private companies

Chapter 1 - Lease Accounting Deep Dive - Unlocking the Key Principles of ASC 842

Course Learning Objectives

Course Overview

Introduction

ASC 842 Organization

Scope

Is an Arrangement a Lease?

Illustrative Examples

Review Questions

Lessee Lease Classification

Recognition and Measurement

Subsequent Measurement

Illustrative Example – Lessee Accounting

Lessor Accounting

Review Questions

Lease Modifications

Lease Modifications – Illustrative Examples

Review Questions

Sale and Leaseback Transactions

Illustrative Examples

Subleases

Review Questions

Financial Statement Presentation Requirements

Disclosure Requirements

Top Challenges in ASC 842

Conclusion

Review Questions

Glossary