Lease accounting, for lessees and lessors.
Learn how leases are classified and recorded, from finance and operating leases to the accounting treatment for both the lessee and the lessor, with practical examples.
Course overview
A lease is an agreement in which the owner of an asset (the lessor) allows another party (the lessee) to use it for an agreed period in return for payments. This course explains how leases are classified and how each party records them.
- Understand what a lease is, and the key terms involved
- Identify the types of leases, such as finance and operating leases
- Apply the tests used to classify a lease
- Account for a lease in the books of the lessee
- Account for a lease in the books of the lessor
- Understand how lease payments, interest, and depreciation are recorded
- See how leases appear in financial statements
- Solve practical lease examples
Lease Accounting lessons
Follow the lessons in order, or search and filter to jump to a subject.
Introduction to Lease Accounting
Learn what a lease is and the key terms used in lease accounting.
Types of Leases
Explore finance leases, operating leases, and other lease types.
Lease Classification
Understand the tests used to decide how a lease is classified.
Lessee Accounting
Record the lease from the point of view of the party using the asset.
Lessor Accounting
Record the lease from the point of view of the asset owner.
Practical Examples
Work through lease examples with entries and calculations.
Learn the basics, then record both sides of the lease.
The lessons start with lease types and classification, then cover accounting for the lessee and the lessor, and finish with practical examples.