AS 19 - Sales & Leaseback

Accountancy

Can someone explain solving this sum in simple terms. It's quite difficult while solving

Soon to be CA

CA Inter

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02-Dec-24 13:29

703

Answers (3)

Best Answer

In case of operating leases - If transaction is at fair value : Recognise profit or loss immediately - If transaction above fair value - Excess of selling price over fair value is ignored. - if transaction below fair value - In case of losses which will be compensated in future, defer. Else recognised.

CA Suraj Lakhotia

Admin

02-Dec-24 17:52

If sale and lease back results in finance lease - always defer and amortise the gain or loss.

CA Suraj Lakhotia

Admin

02-Dec-24 17:51

Thank you Sir 😊

Thread Starter

Soon to be CA

CA Inter

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03-Dec-24 12:51