How does "selling an asset under a sale and leaseback agreement' reduce gearing ratio(I am aware somebody asked the same question sometime back but I am unable to find that thread now).
Shouldn't it increase the gearing ratio?
Effects according to me:
Decreases asset (asset sold)
Increased Right to use asset (with a lower amount than asset sold due to asset's transferred portion)
Increases lease liability
Increase equity(due to gain transferred with a much lower amount)