If a sale and leaseback transaction results in a finance lease,AASB 117 Leases,provides the following accounting treatment for any excess of sales proceeds over the carrying amount:
A)recognise directly in retained earnings of the seller-lessee.
B)defer and amortise over the lease term.
C)immediately recognise as income by the seller-lessee.
D)include in the capitalised amount of the leased asset.

Question

Quizplus · Accepted Answer

In a sale and leaseback transaction resulting in a finance lease, any excess of sales proceeds over the carrying amount is deferred and amortised over the lease term according to AASB 117.

If a Sale and Leaseback Transaction Results in a Finance