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Sale – leaseback (F.v)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Sale – leaseback (F.v)

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
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  • Author
    Posts
  • May 1, 2022 at 3:16 am #654687
    Sourav9271
    Participant
    • Topics: 170
    • Replies: 120
    • ☆☆☆

    Hello sir, 🙂
    Lately watched your lectures..A bit perplexed about the following:

    Dr Proceeds (SOFP)
    Cr Assets. (SOFP)
    Well,if the carrying value is lesser than proceeds , what would be another Cr entry..

    May 5, 2022 at 4:31 pm #654976
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    Hi,

    You must be referring to where the transfer is a sale. In this instance we recognise a profit based on the rights transferred to the lessor-buyer. We detail how to calculate this in the videos and class notes. Have another look through and see how you get on with the examples.

    Thanks

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