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Sale and purchase: why in a sale and repurchase aggrement risks and reward are considered to be transferred(and sale recognised) when the repurchase price which was agreed is below market value
Presumably, you’re talking about a reacquisition under an operating lease. Lower re-acquisition cost could be as a result of negotiating “cheaper” operating lease payments. Does that answer it? If not, post again
No, I was not asking about lease…(although the sale is recognized It can’t be operating leases)
I am actually asking about IAS 18 sale and repurchase of a vehicle by an trader the concept being of risks and reward (why risks and reward are considered to be transferred and sale recognised when the repurchase price which was agreed is below market value)
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