Chapter 16: Leases – Lessor Accounting and Sale-Leaseback

In this section

• Lessor’s Classification Criteria
  Explore how ASC 842 guides lessors in classifying leases as sales-type, direct financing, or operating, with real-world examples and best practices.
• Lease Income, Initial Direct Costs, and Residual Value
  Discover how lessors recognize lease income, treat initial direct costs, and manage residual values under current accounting standards. Explore practical examples, best practices, and key insights to master lessor accounting for leases.
• Sale-Leaseback Arrangements
  Understand the criteria for a valid sale, how to recognize gains, and the accounting for leaseback arrangements under current standards.
• Common Complexities and Illustrative Cases
  Unravel critical complexities in Lessor Accounting and Sale-Leaseback transactions with real-world examples and step-by-step corrections.