Under the provisions of ASU 2016‐02 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.
Correct Answer:
Verified
Q18: For a six-year capital lease,under SFAS No.13,the
Q19: Office equipment recorded under a capital lease
Q20: In computing the present value of the
Q21: Which of the following would indicate that
Q22: Under the provisions of ASU 2016-02,which of
Q24: The key difference between ASU 2016-02 and
Q24: The major difference between ASU 2016-02 and
Q25: If the lessor incurs initial direct cost
Q26: Under the provisions of ASU 2016-02 which
Q28: Under the provisions of ASU 2016-02,in the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents