Section 3: 25–35%3F
Lessee Accounting
Lease accounting under ASC 842 is one of the most heavily tested FAR areas because it changed how ALL leases are recorded. AICPA tests the difference between finance leases and operating leases.
What AICPA Wants You to Know
- 1Classify a lease as finance or operating using ASC 842 criteria
- 2Calculate the right-of-use (ROU) asset and lease liability at commencement
- 3Record lease journal entries for both finance and operating leases
- 4Calculate interest and amortization for a finance lease
- 5Understand the income statement presentation difference between lease types