Sale and leaseback

Hi, Glad you appreciate the work, thank you! If there is no sale then the proceeds are effectively a loan (DR Bank CR Loan). The loan is a financial liability at amortised cost and subject to the usual treatment. There is no discounting as that is already factored in to the proceeds received, where the provider of finance will have looked at the repayments and used an appropriate discount rate to work out their present value, thus being the proceeds they provide to you. Thanks