- This topic has 0 replies, 1 voice, and was last updated 4 years ago by .
Viewing 1 post (of 1 total)
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Sale and Leaseback
Creative accounting measures are often aimed at reducing gearing.
Identify whether the following measures will increase, reduce or have no effect on
gearing.
Selling’ an asset under a sale and leaseback
agreement
Increase Reduce No effect
Dear Sir ,the answer is given “REDUCE” but why?
if leaseback is done ,in that case debt increases and Gearing ratio increase.
