Hello,
Apart from financing purposes is there any other motive for a sale and leaseback transaction? Because if that is the only motive then the substance of the transaction would never satisfy IFRS 16 and would only be accounted for as a loan.
Hoping to hear from you soon. Thanks in advance.
Kind Regards
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Sale and leaseback transaction
8y ago#1Hi,
It is predominantly used as a source of finance but if it has been sold on a very long leasehold then effectively it has been sold in substance, and would meet the criteria of IFRS 16.
Thanks
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