Lease Accounting Overview (the new lease rule)
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- čas přidán 11. 09. 2024
- This video provides an overview of lease accounting based on the new accounting rule per U.S. GAAP (ASU 2016-02). Under the new rule, all leases longer than one year must be capitalized. This means the lessee recognizes the property being leased as an asset, along with a corresponding liability for the lease payments. This is important, as many firms avoided recognizing billions of dollars in liabilities under the old lease accounting rules by structuring their leases to avoid capitalization.
Even though all leases longer than one year must now be capitalized, both lessors and lessees must perform five different tests to determine what type of lease they have (lessees classify a lease as a finance lease or an operating lease, whereas lessors classify a lease as a sales-type lease or an operating lease).-
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Professor Michael, I wish you were my teacher for Intermediate Accounting 2! My teacher just literally reads of the PowerPoint and offers absolutely no explanation of anything! Thank you so much for all this!
Thank you for your support my friend. Your teacher sounds awful, so I'm glad we are able to connect! Hang in there 😀
😊❤
I have been watching your videos since I was a highschool student. Next month, I will be taking the CPA licensure exam and I still find myself coming back to your videos. Can't believe it has been 9 years. Thank you so much for all your help.
I am so discouraged while trying to study for my first attempt at FAR - your videos not only helped me make it through all my college accounting courses but once again are coming in handy for the cpa - I cannot thank you enough!!!!
Thanks for this video. appreciate how you break things down step by step and provide 'a larger picture perspective' that make these concepts make sense. your lessons are also very easy to follow because you explain all the steps and the logical reasons why these accounting/tax rules exist, and anticipate the many questions your audience may have.
Thank you for this comment Michelle. Lease accounting can be very complicated, so I'm glad you were able to benefit from watching this video. Best of luck to you in your studies!
Thank you very much for all your videos. In WGU every student talks about your videos as a lifesaver.
Just what I needed to understand the leases, thank you!
Helping my girlfriend with her MACC final with this video. Thank you sir for doing the Lord's work.
Thank you for dumbing it down I needed this
Thanks a lot!!your course really helped me!!Hope you a nice day 🥺🥺
You're a genius and my hero
Thank you for your videos! You help me a lot to understand the concepts and maths. Appreciate if this video is for the new standard on leasing (ASC 842)?
Thank you so much for your work
You are very welcome!
Very good video! Thank you very much!! God Bless!
Thank you. Very clear.
very helpful!
love the content, would you consider updating is with a video on the new standard for leases?
thanks helpful!!
No problem!
Thank 😍😍😍 ur the best
hi do you have the videos explaining share capital and issue and redemption of loan instruments?
No, sorry 🙁
there is a new update for lease accounting. is this video up to dated? thanks
if you're looking for IFRS 16- based lease accounting, then this approach that he used might be quite different in terms of lessee accounting because he based it on FASB accounting standards.