IFRS and US GAAP Accounting for Leases (2 days)

Course code: 1322

Introduction

This program provides in-depth coverage of the new IFRS and US GAAP lease accounting standards. In January 2016 the International Accounting Standards Board (IASB) published IFRS 16, which supersedes IAS 17 (and related Interpretations) for annual periods beginning on or after 1 January 2019. The US Financial Accounting Standards Board (FASB) published Topic 842, its own new leasing standard, in February 2016: public business entities must apply the new provisions for fiscal years beginning after December 15, 2018.

Leasing has proved an important and flexible source of financing. Existing accounting rules produce different results, depending on whether a lease is classified as a finance (US GAAP uses the term ‘capital’) or an operating lease. Lessees currently account for operating leases off balance sheet and merely disclose the commitment to pay future rentals as a note to the financial statements. Listed companies using IFRS or US GAAP are estimated to have around $3.3 trillion of lease commitments, 85% of which do not appear on the balance sheet. Under the respective IFRS and US GAAP Conceptual Frameworks, all leases produce assets and liabilities that meet the criteria for balance sheet recognition but accounting by lessees for operating leases has been exempted from this treatment. Users often try to estimate the impact of the off balance sheet lease obligations, with limited accuracy.

The IASB and the FASB have jointly developed their new standards over a number of years and have reached the same conclusions in many areas:

  • Definition of a lease
  • Recognition by lessees of leases on the balance sheet
  • Measurement of lease liabilities
  • Lessor accounting unchanged, i.e. the finance and operating lease distinction remains for lessors
  • Enhanced disclosure requirements

However the Boards have not been able to agree on all matters, notably the pattern of recognizing expenses by lessees in the income statement and an exemption for low value assets.

This two-day course provides an in-depth review of the new standards.

Using case studies, examples and exercises, our specialist instructors explain and illustrate all the important issues.

This program answers questions such as:

  • How must arrangements be analyzed to determine whether they contain leases?
  • How are contracts separated into lease and service components?
  • How are leases accounted for in the financial statements of lessees?
  • How does IFRS and US GAAP differ?
  • What are the enhanced disclosure requirements?
  • What are the transitional provisions?
  • What are the practical implications for lessees, lessors and users of the new standards?

Topics

  • Leases
    • Defining a lease
    • Separating a contract into lease and service components
    • Recognition exemptions for short-term leases and leases of low value assets
    • Determining the lease term
  • Lessee Accounting
    • Recognition
    • Measurement - initial and subsequent
    • Presentation
    • Disclosure
  • Lessor Accounting
    • Classification as operating or finance/capital leases
    • Finance leases - recognition and measurement
    • Operating leases - recognition and measurement
    • Presentation
    • Disclosure
  • Sale and Leaseback Transactions
    • Assessing whether a transfer is a sale
  • Differences between IFRS and US GAAP
  • Transitional Rules - options
  • Practical Implications
    • Effects on different sectors - financial statements and performance measures
    • Financial covenants

Teaching method

  • Group live instruction by specialist instructors
  • Description and explanation of IFRS technical requirements in clear and simple language
  • Use of case studies and real-world examples to illustrate practical application of the standards
  • Interactive participation is encouraged
  • All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Prerequisites

Understanding of basic accounting principles based on any national standards. No advance preparation is required for this course.

Course benefits

  • Comply with the new accounting and disclosure requirements for leases
  • Analyze contracts to determine whether they contain leases
  • Apply the rules for initial and subsequent measurement by lessors and lessees
  • Know the differences between IFRS and US GAAP
  • Plan for the implications of the new accounting standards for leases – what it means for you

Testimonials

See what past participants said about this course:

It was very good! (and the food was excellent!). At the start when I saw the material, I thought there would be too many examples but the walkthrough of all of them, reviewing the journal entries, certainly helped to get a solid understanding of the nuances of the new standard. I will certainly recommend IASeminars courses for those who have the opportunity.

Brad Kopas,
Enbridge Inc., Canada

Good training materials, lots of examples. Venue is good and food is good.

Dinah Ortega, Supervisor Tax & Financial Reporting,
FortisAlberta Inc., Canada

Excellent course and the presenter is very knowledgeable. The course content was very well thought out and explained. Easy to follow and straightforward examples provided.

Who should attend?

This course is primarily designed for those who are engaged in leasing activities in their company or are considering doing so in the future. The course is applicable to treasury staff, industry controllers, accountants, analysts, internal and external auditors and other finance professionals who are interested in learning the impending changes to lease accounting.

CPE / CPD Accreditation

NASBA

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. 


Field of study: Accounting

ICAEW Partner in Learning

IASeminars is proud to have been named as an ICAEW Partner in Learning, working together to offer the ICAEW IFRS Certificate to our clients worldwide. ICAEW (The Institute of Chartered Accountants in England and Wales) is a world leading professional membership organisation that promotes, develops and supports over 145,000 chartered accountants worldwide. CPE certificates obtained from attending IASeminars courses are an ideal way for ICAEW members and others to demonstrate their continuing professional development, provided that the topic is relevant to their learning and development needs.

Texas State Board of Public Accountancy

IASeminars is registered with the Texas State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: 009689. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.

Venue

  • This event will be held at Radisson Blu Edwardian Vanderbilt Hotel. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.
  • Our Toronto seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.
  • Our London seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.

Instructor(s)

  • KC Rottok Chesaina

    KC Rottok Chesaina (South Africa) obtained his BCom from Oxford Brookes University with Distinction in 2003. He went on to obtain the Higher Diploma in Accountancy from Wits University in 2004 and qualified as a Chartered Accountant – CA (SA) and Registered Auditor in 2008. He joined RSM Betty and Dickson in 2005 and has since worked for several RSM International member firms including RSM Bird Cameron in Australia and RSM McGladrey in the USA. He was appointed Technical Partner responsible for IFRS training and consulting in September 2009. He has significant experience on the African continent having worked in several countries. KC was the duly appointed national representative to the IFRS Panel of RSM International, an international network of firms with 700 offices in over 100 countries. He travelled annually as a participant and presenter to the RSM regional IFRS conference in London for the five years preceding his resignation as a partner to form his own IFRS consulting firm. He has written several technical opinions which have formed the basis of reporting for a number of large companies listed on the Johannesburg Stock Exchange and has been published in a number of platforms including The Accountancy SA, The African Professional, Business Daily Africa and the Practical Accountancy Looseleaf.

  • Chris Boland

    Chris Boland (Canada) is a professional IFRS consultant specializing in assisting clients with their transition to International Financial Reporting Standards (IFRS) and the application of new IFRS Standards. Chris has assisted over 75 clients covering most industries and sectors in complex IFRS matters He is a Certified Public Accountant, Canadian Chartered Accountant, and also holds the Certified Management Accountant designation. In addition to IFRS, Chris also has extensive experience with matters such as US GAAP, SOX and corporate governance. Prior to establishing his public practice and teaching career, Chris was General Manager (Accounting, IFRS, Internal Controls and Tax) at Canada Post Corporation. His earlier positions at other organizations included being CFO and VP Finance; Director of Tax and Treasury, Controller; Manager of Financial Reporting and Controller (Overseas Operations); Manager of Financial Reporting; and Budget Analyst. He was also an Auditor at the Office of the Auditor General in Canada. Chris’ 25 years of experience also include 12 years in the telecommunication hardware and software industry and in pharma research.

  • Saket Modi

    Saket Modi is a London-based financial trainer and consultant with over 15 years of professional experience. He specialises in delivering courses on advanced accounting, financial reporting and financial analysis topics, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), financial instruments and corporate finance. Saket has spent considerable time working, advising and training on complex IFRS matters - especially in relation to recognition and measurement of financial instruments. He has gained valuable experience working with both FTSE listed companies and also with Big 4 accounting firms. He has designed and facilitated workshops for banks and other financial institutions and also for corporates in the UK, Europe, Africa, Middle East and Asia, and was invited by the International Auditing and Assurance Standards Board® (IAASB®) to present a paper on IFRS 9 Financial Instruments at their board meeting in New York. Saket is a member of the Institute of Chartered Accountants of India, has completed the IFRS certificate course offered by the Institute of Chartered Accountants in England and Wales (ICAEW) and also holds the Diploma in IPSAS from the Chartered Institute of Public Finance and Accountancy (CIPFA). As well as being a qualified accountant, Saket is also a CFA® charterholder.

In House

To bring this course in-house please contact us and we will be pleased to assist

Course details

Course schedule

Select a start date for more details

27 Jun 2018 London

Course level:
Overview
CPE / CPD:
16 hours
Start date:
27 Jun 2018
Start time:
09:00
Finish date:
28 Jun 2018
Finish time:
18:00
Location:
London
Price:
GBP 1,750
Subject to UK VAT (Read more)

27 Aug 2018 Toronto

Course level:
Overview
CPE / CPD:
16 hours
Start date:
27 Aug 2018
Start time:
08:00
Finish date:
28 Aug 2018
Finish time:
17:00
Location:
Toronto
Price:
CAD 2,500
Subject to Canadian GST/HST Ontario (Read more)

18 Oct 2018 London

Course level:
Overview
CPE / CPD:
16 hours
Start date:
18 Oct 2018
Start time:
09:00
Finish date:
19 Oct 2018
Finish time:
18:00
Location:
London
Price:
GBP 1,750
Subject to UK VAT (Read more)
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