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What was the treatment for the extra 10m on sold and leased back plant
I followed your lectures up to when you they will treat it as deferred cash and amortise it but in the workings it was not shown.
Can you please clarify the treatment of the that
FrancI don’t have the question to hand so this is from deducing the information from your post.
When the asset was sold and leased back, it’s not “true and fair” to take credit for the profit arising on the sale. Instead we shall spread the profit from the sale over the period of the lease.
Does that answer it?
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