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IFRS 15

Ddarsh19972y ago
Hello, Why in a sale or leaseback transaction, we need to firstly apply IFRS 15 before proceeding further? Thanks
stephenwidbergstephenwidbergTutor2y ago#1
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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