Under ASPE, if a leased asset's fair value is less than its carrying value at the date of sale under a sale-and-lease-back transaction, the lessor has experienced an impairment loss.

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Under ASPE (Accounting Standards for Private Enterprises) in Canada, if a leased asset's fair value is less than its carrying value at the date of sale under a sale-and-leaseback transaction, it is the seller-lessee, not the lessor, who might recognize a loss due to impairment or a loss on sale, depending on the transaction specifics. The lessor would evaluate the asset for impairment based on its own carrying value and future cash flow expectations, not on the sale transaction metrics between the seller-lessee and the lessor.

Under ASPE, If a Leased Asset's Fair Value Is Less