Accounting for sale and leaseback transactions

Which of these represents the new accounting treatment for lessees under IFRS 16?

All lease liabilities recognised on the statement of financial position

All leases must be depreciated over a maximum of 5 years

Recognise operating lease income on a straight line basis

An entity must disclose if they are choosing to continue using operating leases

Which of the following represents the new accounting treatment for lessors under IFRS 16?

All lease assets must be recorded, whether it is an operating or finance lease

There is no change to lessor accounting compared to IAS 17

All lease income must be recorded in the statement of profit or loss, regardless of the length of the lease

Lessor accounting is no longer permitted under IFRS 16

What is the key determinant of the accounting treatment of a sale and leaseback?

Whether the transfer constitutes a sale per IFRS 15

Whether the transaction is an operating or finance lease

Whether the leaseback is the majority of the useful life

Whether the lease payments constitute substantially all of the asset's fair value

Which, if any, of the following statements regarding IFRS 16 for lessees is correct? Statement 1 - Leases less than 12 months can be expensed on a straight-line basis, or Statement 2 - Lessees can choose to expense items in either depreciation or finance costs

Neither statement is correct

Statement 2 only is correct

Both statements are correct

Statement 1 only is correct

Which of the following is the correct treatment for a sale and leaseback if the transaction does NOT constitute a sale per IFRS 15?

The proceeds are held as a finance liability

A gain is recognised as the difference between proceeds and carrying amount of the asset

A gain is recognised representing the right of use transferred to the buyer-lessor

None of the above

Which of the following is the correct treatment for a sale and leaseback if the transaction DOES constitute a sale per IFRS 15?

A gain is recognised representing the right of use transferred to the buyer-lessor

None of the above

A gain is recognised as the difference between proceeds and carrying amount of the asset

The proceeds are held as a finance liability

Where the leaseback contains variable payments, at what value should the ROU asset be recorded in the books of the seller-lessee?

Zero, as the payments do not qualify as part of the lease liability

At the rights retained by the seller-lessee

At the previous carrying amount prior to the leaseback arrangement

At the rights transferred to the buyer-lessor

What is the proposed response of the Committee in respect of the accounting for a ROU asset under a sale and leaseback with variable payments?

No action is required, as IFRS 16 adequately covers the situation

Publish a tentative agenda decision to provide guidance of the correct treatment

Issue a new exposure draft for IFRS 16

Amending IFRS 16 as part of the annual improvements cycle

Which, if any, of the following statements is correct? Statement 1 - The sale and leaseback with variable payments issue only exists where the transaction does not qualify as a sale per IFRS 15 Statement 2 - The ROU asset under a sale and leaseback is recorded at the proportion of the proceeds remaining with the seller-lessee

Both statements are correct

Statement 2 only is correct

Neither statement is correct

Statement 1 only is correct

What is the proposed response of the Committee in respect of the subsequent measurement of the lease liability under a sale and leaseback with variable payments?

No action is required, as IFRS 16 adequately covers the situation

Issue a new exposure draft for IFRS 16

Amending IFRS 16 as part of the annual improvements cycle

Publish a tentative agenda decision to provide guidance of the correct treatment

Accounting for sale and leaseback transactions

Which of these represents the new accounting treatment for lessees under IFRS 16?

Which of the following represents the new accounting treatment for lessors under IFRS 16?

What is the key determinant of the accounting treatment of a sale and leaseback?

Which, if any, of the following statements regarding IFRS 16 for lessees is correct? Statement 1 - Leases less than 12 months can be expensed on a straight-line basis, or Statement 2 - Lessees can choose to expense items in either depreciation or finance costs

Which of the following is the correct treatment for a sale and leaseback if the transaction does NOT constitute a sale per IFRS 15?

Which of the following is the correct treatment for a sale and leaseback if the transaction DOES constitute a sale per IFRS 15?

Where the leaseback contains variable payments, at what value should the ROU asset be recorded in the books of the seller-lessee?

What is the proposed response of the Committee in respect of the accounting for a ROU asset under a sale and leaseback with variable payments?

What is the proposed response of the Committee in respect of the subsequent measurement of the lease liability under a sale and leaseback with variable payments?

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