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in sale and lease back question ,we have figured out its not a sale and lease back cuz its doesnt satisfy performance obligation as per ifrs 15,so we recognise asset at cv and sale proceeds as financial liabitlty.
my doubt is on depreciation regarding this,
what should we take while depreciating ,remaining useful life or lease term?
since its not a lease ,we should take useful life right?but in the kaplan kit they have taken lease term.First thing to mention about this Q is that it was originally set pre-IFRS 16, therefore, there are different versions of how it has been updated. (And I don’t have a Kaplan kit.)
If there’s no sale, the physical asset is not derecognised. So, as you say, depreciation would continue as before over the useful life of the asset.
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