forward/call option – Repurchase agreements

Hi there,

If a forward/call option is accounted for as a lease under IFRS 16 when the repurchase amount is less than the original selling price, where does the gain go to when the option is carried out? The original amount paid is recognised as a financial liability and then the entity buys back the asset but at a lower price, so where does the difference go?

The BBP text book gives an example for a forward/call option where the repurchase price is equal to or greater than the original selling amount and the excess payment over original selling price goes to interest expense. Should the above go to interest received?

Thanks a mill!
Eliza