Page 158 - F2 Integrated Workbook STUDENT 2019

Chapter 6

3.2 Accounting for sale and leaseback arrangements

Is there a sale
per IFRS 15?

NO YES

e.g. control of asset is
NOT transferred to buyer e.g. control of asset DOES
transfer to buyer on sale
on sale

Treat as a LOAN (1) Sell the asset

 No derecognition of sold  Derecognise the sold asset
asset
(2) Record the lease
 Record proceeds as a
liability  Record right-of-use asset
 Record lease liability

(3) Record gain or loss on
disposal

Dr Cash

Dr Right-of-use asset (see section
3.3)

Cr PPE

Cr Lease liability

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