please help me to account for sale leaseback ?

[bbmak]

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]

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]

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