Under the Provisions of ASC 842 Sale‐leaseback Accounting Is Virtually

Under the provisions of ASC 842 sale‐leaseback accounting is virtually eliminated as an off‐balance sheet financing proposition, because both the seller‐lessee and a buyer‐lessor will apply the provisions of FASB ASC 602 Revenue Recognition to determine whether a sale has occurred. Accordingly, which of the following is not a criterion that must be met to record a sale-leaseback a sale?

A) The transaction meets the sale guidance in the new revenue recognition standard.
B) The transaction is a leveraged lease
C) The leaseback is not a finance or a sales‐type lease
D) If there is a repurchase option, the exercise price is at the asset's fair value at the time of exercise, and alternative assets that are substantially the same as the transferred asset are readily available in the marketplace.