A company sells a building to a bank in 2013 at a gain of $100,000 and immediately leases the building back for period of five years. The lease is accounted for as an operating lease. The building was originally purchased for $200,000 and currently had a book value of $50,000 at the date of the sale.
Assume the seller of the building is a U.S. company that is preparing to convert from U.S. GAAP to IFRS. At December 31, 2014, with regard to the sale and leaseback accounting, what amount would reconcile stockholders' equity from U.S. GAAP to IFRS at December 31, 2014?

Question

Quizplus · Accepted Answer

In Conversion from GAAP to IFRS, the $60,000 Deferred Gain on the Sale Increases the Equity Reconciliation by $60,000 at Year-End 2014

A Company Sells a Building to a Bank in 2013