ACCA F7考試：Sale and Leaseback Transactions

1. Issue

The rentals and the sale price are usually interdependent as they are negotiated as a package and need not represent fair values.

Accounting treatment depends on whether the leaseback is finance or operating.

2. Sale and Leaseback as Finance Lease

The substance of the transaction is that there is no sale─the risks and rewards of ownership have not passed from the original lessee.

Any excess of sales proceeds over the carrying amount shall not be immediately recognised as income in the financial statements of a seller-lessee. If such an excess is recognised, it shall be deferred and amortised over the lease term.

If the leaseback is a finance lease, the transaction is a means whereby the lessor provides finance to the lessee, with the asset as security.

A "profit" is recognised but deferred (i.e. it is carried as a credit balance in the statement of financial position and released to the statement of comprehensive income over the life of the lease).

The asset and lease creditor are reinstated at the fair value of the asset.

3. Sale and Leaseback as an Operating Lease

Substance of a sale and leaseback operating lease is that there is a sale, and profit may be recognised.

If the leaseback is an operating lease, and the rentals and the sale price are established at fair value, there has been, in effect, a normal sale transaction and any profit or loss is recognised immediately.

If the sale price is below fair value, any profit or loss shall be recognised immediately, except:

if the transaction results in a loss, which is then compensated by future rentals at below market price, it shall be deferred and amortised in proportion to the rental payments over the period for which the asset is expected to be used.

If the sale price is above fair value, the excess over fair value shall be deferred and amortised over the period for which the asset is expected to be used.