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+--- Thread: please help me to account for sale leaseback ? (/thread-please-help-me-to-account-for-sale-leaseback)
please help me to account for sale leaseback ? - bbmak - 08-03-2007
Hi,
Recenly, I am working on a paper for accounting sale-leaseback.
I have read over the FASB Statement 98, but i have few questions.
Question.1
In a sale-leaseback event, isn't if the lease meets one of the four criteria for classifying a lease as a capital lease, the seller-lessee should account for the lease as a capital lease? and if none of the four criteria are met, the lease is an operating lease?
Question.2
I heard my professor said, there is an exception to classify the sale-leaseback to capital leases and operating leases.
May I know what is the exception?
- kamranACA - 08-21-2007
Dear,
If you want to ask some thing in IFRSs perspective, I would be here to reply your query. However FASB and statement 98 had never been my area, so, I look to other members, most probably from ACCA to answer ur query.
If u have some qury on IAS 17, do let me know.
Regards,
- Schuaeb - 09-14-2007
bbmak, to the extents I know the basis of classifying a lease as finace or operating are same for sale and lease back as they are for ordinary lease