Page 157 - F2 Integrated Workbook STUDENT 2019
P. 157
Leases
Sales and leaseback
3.1 What is a sales and leaseback arrangement?
(1) JS sells asset to AF
for cash
JS Ltd AF ltd
(2) AF immediately
leases the asset
back to JS
The accounting treatment for sales and leaseback depends on whether the original
sale is treated as a sale per IFRS 15 Revenue from contracts with customers.
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