Course Description

The new lease accounting standard significantly affects the reporting of lease arrangements for lessees. This self study program covers the new standard focusing on the differences in how operating and finance leases are accounted for and their impact on the financial statements. Examples show the new operating lease accounting treatment and disclosure; comparing the new standard to the previous standard. 

Broderick Associates

Chris Broderick

CHRIS BRODERICK, as the primary principal of Broderick Associates, Chris Broderick translates his experience as a financial analyst to the teaching of accounting and financial statement analysis. Chris is a second-generation instructor of this family-run enterprise beginning his teaching in 1995 in association with his father. Since 1986 as a analyst with Chase Manhattan Bank, Chris has a broad expertise in international credit analysis traveling throughout the globe from his base in the New York and London offices. Later in 1989 he began training within Chase on a worldwide platform. Since joining Broderick Associates, he has trained employees with HSBC, JP Morgan Chase, TD Bank among others; both locally and globally. Throughout his career, he has also been aligned with various colleges and universities.

Course curriculum

  • 1

    Table of Contents, Course Objectives, Course Prerequisite Requirements

  • 2

    Section 1: The Nature and Advantages of Leases

    • Provisions of Lease Agreements

    • Advantages of Leasing from the Lessee's Viewpoint
  • 3

    Section 2: Accounting by Lessee

    • Accounting by Lessee

    • Example: Basic Concepts Underlying Accounting for Leases - Finance Lease

    • Example: Basic Concepts Underlying Accounting for Leases - Operating Lease

    • Comparison of Financing Lease Method and Operating Lease Method

    • Short-Term Lease Option

    • Exercise 1

    • Solution: Exercise 1
  • 4

    Section 3 Criteria for Classifying Leases

    • Criteria for Classifying Leases

    • Exercise 2

    • Solution: Exercise 2

    • Exercise 3

    • Solution: Exercise 3

    • Exercise 4

    • Solution: Exercise 4

    • Exercise 5

    • Solution: Exercise 5
  • 5

    Section 4 Additional Issues Related to Accounting for Leases

    • Accounting for the Capitalized Value of the Lease

    • Exercise 6

    • Solution: Exercise 6

    • Exercise 7

    • Solution: Exercise 7

    • Amortization of Leased Asset

    • Exercise 8

    • Solution: Exercise 8

    • Timing of Lease Payments

    • Example: Payments at the Beginning of Period - Finance Lease

    • Example: Payments at Beginning of Period - Operating Lease

    • Exercise 9

    • Solution: Exercise 9

    • Sale-Leaseback

    • Reporting Requirements