Where a sale and leaseback arrangement involves the benefits and risks of ownership being maintained by the lessee.
A) The lease back is classified as a finance lease.
B) The owner has effectively refinanced the asset.
C) Any profit on the sale should be deferred in the balance sheet and amortised.
D) The owner has managed to obtain funds from the sale but also maintained control of the asset.
E) None of the given answers.

Question

Quizplus · Accepted Answer

The Answer of Where a sale and leaseback arrangement involves the benefits and risks of ownership being maintained by the lessee.
A) The lease back is classified as a finance lease.
B) The owner has effectively refinanced the asset.
C) Any profit on the sale should be deferred in the balance sheet and amortised.
D) The owner has managed to obtain funds from the sale but also maintained control of the asset.
E) None of the given answers.

Where a Sale and Leaseback Arrangement Involves the Benefits and Risks