Lease Accounting and its Effect on Manufacturing

Instructor

Joel
Korson
Instructor

Kasey
Roth

Does your business or your clients lease warehouse space, equipment, or vehicles? Do you or your clients have service contracts, supply agreements, or contract manufacturing arrangements? If so, you are likely to be impacted by the effects of the upcoming implementation of the new lease standard, ASC 842. After being delayed for a year, the standard is now effective for all non-public business entities for reporting periods beginning after December 15, 2021. Manufacturing companies, in particular, face some significant challenges in implementing the standard, given the volume and diversity of leased assets in the industry.

Learning Objectives

To gain an understanding of the new leasing standard, how it may affect your business or clients, and to help prepare for implementation.

Major Topics

The significant differences between current treatment of leases under ASC 840 and the new treatment under ASC 842, including the new definition of leases and the impact of imbedded leases.
Accounting and reporting differences between the newly defined operating leases and the newly created finance leases.
Adoption of ASC 842 pertaining to both restatement of financial statement figures as well as financial statement note disclosures.

CPE Credits Available

1 CPE

1: Accounting

Things to Know About This Course

Course Level

Intermediate

Prerequisites

A basic understanding of the current treatment of leases under ASC 840

Advanced Preparation

None

Intended Audience

All industry professionals, private or public.

Provider

ACPEN