Topics in Long-Term Liabilities and EquityLocked: included in All Access

How leases are classified and reported by lessees and lessors under IFRS and US GAAP, how defined contribution, defined benefit and share-based compensation plans reach the financial statements, and what the notes on leases, pensions and share-based pay disclose.

1. 1. What a lease is and how it is classifiedA lease gives the user control of a specific asset for a period in exchange for payments, and it is a finance lease if it looks like buying the asset, otherwise an operating lease.Video · 7 minLocked: included in All Access12 min
2. 2. Lessee accounting: the IFRS model and US GAAP finance leasesUnder IFRS (all leases) and US GAAP (finance leases), the lessee books a right-of-use asset and a lease liability at the PV of the payments, then charges interest on the liability and amortises the asset separately.Video · 6 minLocked: included in All Access14 min
3. 3. US GAAP operating leases and the effect on ratiosA US GAAP operating lease puts the same liability on the balance sheet as a finance lease, but turns interest and amortisation into one flat lease expense and puts the whole payment in operating cash flow.Video · 6 minLocked: included in All Access13 min
4. 4. Lessor accounting: finance versus operating leasesA finance lessor swaps the asset for a lease receivable and earns interest; an operating lessor keeps and depreciates the asset and earns straight-line lease revenue.Locked: included in All Access12 min
5. 5. Defined contribution and defined benefit pension plansIn a defined contribution plan the company's expense is simply what it pays in, while in a defined benefit plan the company carries the funded status on its balance sheet and splits the yearly change between profit or loss and other comprehensive income.Video · 6 minLocked: included in All Access14 min
6. 6. Share-based compensation: stock grants, options and SARsShare-based pay is measured at fair value on the grant date and expensed over the vesting period, whatever the share price does afterwards.Video · 6 minLocked: included in All Access14 min
7. 7. Presentation and disclosure: leases, pensions and share-based payThe notes on leases, pensions and share-based pay are where an analyst finds the amounts, timing and uncertainty of future cash flows that the face of the statements only summarises.Locked: included in All Access12 min