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Sale and leaseback
IAS 17-pr59
Sale and leaseback in a finance lease
The excess of (1) over (2) is
deferred and amortised over the lease term
(1) sales proceeds
(2) carrying amount of lease asset
IAS 17-pr61
Sale and leaseback in an operating lease
If sale price = fair value
Profit or loss is recognised immediately
If sale price > fair value
The excess over fair value is deferred
and
amortised over the period the asset is used
If sale price < fair value
Loss is recognised immediately
Exception:
When the loss is compensated by
below market lease payments in the future
The loss is deferred
and
amortised over the period the asset is used
IAS 17-pr63
Sale and leaseback in an operating lease
If fair value < carrying amount
Loss is recognised immediately
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International Accounting
Standards (IAS)