[Hopefulcpa1234]

Hi all,

Could anyone give me a basic summary / understanding of the new lease guidance for FAR? I am having a really hard time following the becker chapter on lease. I love the Ninja Plus videos but they too outdated for leases now. Thanks in advance!

[Nbmorty]

Ask any specific question and i would answer you.. But explaining the whole thing isn't going to work since i couldn't do it better that becker!
Make sure u read the book and u understand what they are trying to say + read mcq explanations+ check all lease related sims (there are some in gov 1 so f9)
The point is (in my personal opinion with Becker you wouldn't get the full understanding without doing it all starting with lectures ending with sims then comes the aha moment)
Also in my personal opinion they did it on purpose (to avoid ppl just coping the book/sharing the pass)
You will get it at the end but you have to watch the lecture (it's Gearty but do it anyway) read the module do all mcq read why u are wrong then do sims related, and watch sim solution videos.. If by that point you still have questions just post 😉 i am happy to help.. But i doubt u will have any!

[thisismyname]

With the new standard, both finance and operating leases are now recognized on the balance sheet. With operating leases, there is no transfer of ownership and the expense is straight-lined. With finance leases, ownership transfers to you and the expense starts higher at the beginning but gets lower over time (think of the interest expense on a mortgage). In the end, the total expense recognized under both methods will be the same over the life of the lease.

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