IFRS 16 Summary [Video]
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IFRS 16 Summary [Video]

Here’s a summary of IFRS 16 for both lessees and lessors. Lessees must capitalize all leases except for short-term leases (12 months or less) and leases of low-value assets (asset has a fair value of $5,000 or less at the beginning of the lease). Capitalization means the lessee must record a right-of-use asset and a lease liability on its statement of financial position at the commencement of the lease. The lessee then records depreciation expense (for the right-of-use asset) and interest expense (for the lease liability) throughout the lease term. Lessors must first classify their lease as a finance lease or an operating lease, as this has a significant effect on the lessor’s accounting. If the lease is a finance lease, the lessor must derecognize the asset from its statement of financial position and record a lease receivable upon commencement of the lease. (If the lessor is a manufacturer or a dealer, the lessor must also record sales revenue and cost of goods sold upon commencement of the lease.) The lessor then records interest revenue (for the lease receivable) throughout the lease term.If the lessor has classified the lease as an operating lease, then the lessor should not remove the asset from its statement of financial position or record a lease receivable upon commencement of the lease. (Also, the lessor should not recognize sales revenue or cost of goods sold, even if it is a manufacturer or a dealer.) When it comes to the income statement, the lessor records depreciation expense (because the asset is still on the lessor’s books) and records lease revenue on a straight-line basis throughout the lease term.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

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I majored in Accounting because of my wife! [Video]
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I majored in Accounting because of my wife! [Video]

My subscribers know me as a corporate controller, but in this video I go down memory lane and discuss with my wife (who is also an Accountant) why we chose to major in Accounting back in 2002My Best-Selling Products:Get My “Night Before the Accounting Interview Guide” including All Levels Q&A:https://thefincontroller.com/p/the-night-before-your-accounting-interview-guide-for-all-levels📈 Get $25 off MY ONLINE COURSE ON FINANCIAL METRICS (code: Save25)https://thefincontroller.com/p/learn-financial-metrics-kpis/?product_id=2659754&coupon_code=SAVE25&preview=logged_outMy Recommended Products (I will only share what I love ❤ here)⚪️ 🧠 Roger CPA Review Course (get 50% off): https://www.uworld.com/productreferral.aspx?ukey=8lzsxx2bT8qzYRxekeTKyWQ3d3d⚪️ 📚 Learning//SkillShare (get 2 weeks free): https://www.skillshare.com/r/profile/Bill-Hanna/7521537My Recommended Finance & Accounting Books 📚+🧠=💥⚪️ Auditing: https://amzn.to/361wJhZ⚪️ Forensic Accounting: https://amzn.to/2G6t9bo⚪️ Introduction to Finance: https://amzn.to/2ExgUEA⚪️ Introduction to Managerial Accounting: https://amzn.to/33SEyE4———————————————————————Hang Out with me on social media:📱https://www.tiktok.com/@thefinancialcontroller🙋🏼‍♂️https://www.facebook.com/groups/780732429036886/?source_id=101273467885666📸 https://www.instagram.com/the_financial_controller/DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!All views expressed on my channel are mine alone. Not intended as financial or professional advice

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IFRS 16 vs ASC 842 [Video]
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IFRS 16 vs ASC 842 [Video]

ASC 842 is the section of the U.S. accounting rules codification that governs accounting for leases. ASC 842 was issued in February of 201640 and has many similarities to IFRS 16. For example, both ASC 842 and IFRS 16 require lessees to capitalize leases with a lease term of more than one year. However, there are several key differences between ASC 842 and IFRS 16. These differences mainly pertain to the lessee’s perspective. The most significant difference is that ASC 842 requires lessees to conduct a classification test to determine whether a lease will be treated as a finance lease or an operating lease. If the lease is classified as an operating lease, the lessee recognizes both interest expense on the lease liability and amortization expense on the right-of-use asset. However, the lessee amortizes the right-of-use asset in such a way that total lease expense is the same for each period. In short, the lessee first calculates interest expense and then calculates amortization expense as the plug that will make total lease expense the same amount each period. Thus, lessees report a single amount for lease expense that is the same from period to period. Another important difference is that ASC 842 doesn’t has an exception for leases of low-value assets. Recall that IFRS 16 requires lessees to capitalize all leases, except (a) short-term leases of 12 months or less and (b) leases of assets that have a value of $5,000 or less. With ASC 842, the exception is only available for short-term leases of 12 months or less. For lessors, ASC 842 relies on quantitative criteria to determine whether a lease should be classified as a finance lease or an operating lease. IFRS 16 says this determination should be based on the substance of the transaction.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

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Initial Direct Costs [Video]
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Initial Direct Costs [Video]

Initial direct costs are costs that wouldn’t have been incurred if the lease had not been executed. Commissions paid to selling agents and legal costs related to executing the lease or preparing lease documents thereafter are examples of initial direct costs. Legal costs incurred prior to executing the lease, advertising costs, depreciation, and employee salaries are not considered initial indirect costs.For the lessee, initial direct costs increase the right-of-use asset but don’t affect the lease liability. The right-of-use asset is then depreciated, so the initial direct costs are eventually expensed.For the lessor, the treatment of initial direct costs depends on the type of lease. • With operating leases, initial direct costs are expensed over the term of the lease• With finance leases, initial direct costs are expensed upon commencement of the lease if sales revenue is recognized by the lessor. If the lessor does not recognize a sale, the initial direct costs are expensed over the term of the lease— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

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Impairment: ASC 350, ASC 360, and IAS 36 [Video]
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Impairment: ASC 350, ASC 360, and IAS 36 [Video]

Need help understanding the rules for impairment under U.S. GAAP? This collection of two eLearning courses (eligible for 2.50 CPE credits) covers property, plant and equipment (PP&E), intangible assets, as well as goodwill. Purchase these courses as a collection and save!Take the courses HERE: https://revolution.gaapdynamics.com/learn/public/learning_plan/view/7/asc-350-and-360-impairmentOr learn more on our blog: https://www.gaapdynamics.com/insights/blog/Learn more about GAAP Dynamics: https://www.gaapdynamics.com/ Check out our other online courses on the Revolution: https://revolution.gaapdynamics.com Subscribe to GAAP Dynamics to see more videos like these!

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Lease Prepayments and Incentives IFRS 16 [Video]
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Lease Prepayments and Incentives IFRS 16 [Video]

The calculation of the right-of-use asset is not just a function of the lease liability. The measurement of the right-of-use asset is also a function of lease prepayments, lessor incentives, initial direct costs borne by the lessee, and costs to dismantle the asset or restore the site to its previous condition.Lease prepayments increase the right-of-use asset while any lease incentives provided by the lessor to the lessee decrease the right-of-use asset.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

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Gross vs Net Leases [Video]
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Gross vs Net Leases [Video]

Executory costs are costs like building maintenance, utilities, property taxes, insurance, and common area expenses that lessors may pass on to lessees. The way the lessee should account for these costs depends on whether the costs are:a) a fixed component of the lease payments or b) a variable component that is paid either to a third party or directly to the lessor. If the executory costs are fixed, they should be included when calculating the lease liability (thus, they are also part of the right-of-use asset). This type of arrangement is called a gross lease. If the executory costs are variable, they should be expensed as incurred. They would not be included in the lease liability or right-of-use asset. This type of arrangement is called a net lease.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

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US GAAP Principles Mapped To The Balance Sheet Accounts. Fully Explained! [Video]
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US GAAP Principles Mapped To The Balance Sheet Accounts. Fully Explained! [Video]

Whenever I look up US GAAP principles such as Accruals and conservatism, I often find Cold Hard definitions that lack context. But how do these US GAAP principles relate to the accounts on the financial statements? for example, what does the principle of accrual mean for the balance of accounts receivable? And what does the principle of conservatism mean for the inventory account?Videos Mentioned:My video on Cash Accounting vs. Accrual Accounting: https://youtu.be/eApsfjccm7sMy video on Revenue Recognition: https://youtu.be/CnlKAvu6qdIMy video on GAAP Principles for Income Statement: https://youtu.be/Yy2y_tfqKdc——————————————————-My Best-Selling Products:Get My “Night Before the Accounting Interview Guide” including All Levels Q&A:https://thefincontroller.com/p/the-night-before-your-accounting-interview-guide-for-all-levels📈 Get $25 off MY ONLINE COURSE ON FINANCIAL METRICS (code: Save25)https://thefincontroller.com/p/learn-financial-metrics-kpis/?product_id=2659754&coupon_code=SAVE25&preview=logged_outMy Recommended Products (I will only share what I love ❤ here)⚪️ 🧠 Roger CPA Review Course (get 50% off): https://www.uworld.com/productreferral.aspx?ukey=8lzsxx2bT8qzYRxekeTKyWQ3d3d⚪️ 📚 Learning//SkillShare (get 2 weeks free): https://www.skillshare.com/r/profile/Bill-Hanna/7521537My Recommended Finance & Accounting Books 📚+🧠=💥⚪️ Auditing: https://amzn.to/361wJhZ⚪️ Forensic Accounting: https://amzn.to/2G6t9bo⚪️ Introduction to Finance: https://amzn.to/2ExgUEA⚪️ Introduction to Managerial Accounting: https://amzn.to/33SEyE4———————————————————————Hang Out with me on social media:📱https://www.tiktok.com/@thefinancialcontroller🙋🏼‍♂️https://www.facebook.com/groups/780732429036886/?source_id=101273467885666📸 https://www.instagram.com/the_financial_controller/DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!All views expressed on my channel are mine alone. Not intended as financial or professional advice

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The FASB wants your input [Video]
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The FASB wants your input [Video]

HERE’S THE LINK IF YOU’D LIKE TO SUBMIT FEEDBACK TO THE FASB: * https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176176828145&acceptedDisclaimer=true The FASB published an Invitation to Comment (ITC) on June 24, 2021.This means the FASB is seeking feedback from you, the public, about its future standard-setting agenda.The FASB conducted an initial outreach in 2020, and people said they wanted 4 things:• Greater disaggregation of financial reporting information• Guidance for emerging topics• Reduction of unnecessary complexity in GAAP• Improvements to the standard-setting processWith respect to disaggregation, people asked for:• A breakdown of COGS and SG&A to better understand a company’s cost structure • A breakdown of income taxes• A better understanding of how ESG-related disclosures would affect the financial statementsWith respect to emerging areas in financial reporting, people asked the FASB to address:• Definition of a derivative• Digital assets (crypto)• Want companies to be able to elect fair value, instead of cost minus impairments• Intangible assets (software)• Standardize non-GAAP metrics (EBITDA and FCF) to increase comparability• How to account for ESG-related transactions (investments in renewable energy credits, carbon offsets, and emissions allowances)The FASB wants to know:• Which of these topics should be a priority• Which topics have they missed• What are solutions for each topic• What are the costs and benefits of those solutions— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

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Solver in Excel – Step by Step Tutorial [Video]
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Solver in Excel – Step by Step Tutorial [Video]

Solvers in Excel ————————-In this step-by-step tutorial, we’ll show you how to use Solver, a powerful optimization tool in Excel. First, we will learn how to activate Solver in Excel and then use it to find the optimal solution to a problem. In addition, we will comprehend how to use Solver to solve arithmetic equations, linear and nonlinear problems.What is Solver in Excel?——————————————–A solver is a powerful tool that helps find solutions to complex business problems by identifying the goal (objective), variables, and constraints. It returns an optimum solution that sets accurate variable values, meets all constraints, and achieves the goal.Key Components of SOLVER in Excel———————————————————–• Objective cell – This contains a formula that returns the desired outcome of the Solver.• Variable cells – These cells include variable data that can be changed to get the desired result.• Constraint cells –These are the conditions that must be satisfied by the solution of the problem.———————————————————————————————–To know more about Solver in Excel, you can go to this link: https://www.wallstreetmojo.com/solver-in-excel/—————————-Connect with us! —————————LinkedIn https://www.linkedin.com/company/wallstreetmojo/mycompany/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/?utm_medium=copy_linkTwitter https://twitter.com/wallstreetmojoSubscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe – https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1

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Lease Disclosures IFRS 16 [Video]
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Lease Disclosures IFRS 16 [Video]

Lessees and lessors must make certain disclosures regarding leases. For example, lessees must disclose the weighted-average discount rate and a maturity analysis while lessors must disclose the carrying value of the lease receivable and the amount of interest revenue.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

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