Description:
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 $600-$700 billion 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:
1. Recognize the advantages and disadvantages of leasing
2. Differentiate between the operating and capital lease method.
3. Distinguish between operating, direct financing, and sales-type method.
4. Recognize the key terms and costs included when accounting for leases.
5. Compute leased asset and depreciation expense entries.
6. Recognize differences between GAAP and IFRS when accounting for leases.
Topics Covered:
- The Leasing Market
- Residual Value Considerations
- Transfer of Lease Receivable
- Sale-Leaseback
- Subleases and Similar Arrangements
- Modifications and Terminations
- Renewals and Extensions
- Leveraged Leases
- Related Parties
- Money-Over-Money Lease
- Third Parties
- Wrap Leases
- Business Combinations
- Disposal of a Business Segment
- Current Value Financial Statements
- Real Estate Leases
Category: Accounting
Delivery Method: Online
Level: Basic to Intermediate
Prerequisites: Basic Accounting
Passing Score: 70%
NASBA: Yes QAS Self Study
Author: Delta Publishing
ABOUT THE SUBJECT MATTER EXPERT:
Dr. Jae K. Shim is Professor of Business at California State University, Long Beach,
California. Dr. Shim received his MBA and Ph.D. degrees from the University of California at Berkeley (Haas School of Business.) He has co-authored over 50 professional business books and has been a consultant to commercial and nonprofit organizations for over 30 years.
