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Hello,
Why in a sale or leaseback transaction, we need to firstly apply IFRS 15 before proceeding further?
Thanks
I recommend that you listen to the sale and leaseback lecture again.
Basically :
Either genuine sale and leaseback:
Dr R of U asset Dr Cash Cr PPE Cr Liability (balance to P&L)
Or just a secured loan:
Dr Cash Cr Liability
How to tell ……. look at the lease term …………………..if it’s for the asset life, it’s probably a secured loan.
But do watch the lecture again. 🙂
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