Which of the Following Is True Regarding the Deferral of Sale

question 90

Multiple Choice

Which of the following is true regarding the deferral of sale profits on a sale-leaseback using IFRS?

• A)Both profits and losses on a sale followed by an operating lease leaseback are recognized immediately if the transaction is established at fair value
• B)Profit from the sale should be amortized in proportion to the rental payments it an operating lease results from the sale-leaseback.
• C)Any profit on a sale-leaseback resulting in an operating lease is deferred and recognized over the subsequent lease period, whereas any loss is recognized immediately.
• D)Profit from the sale should be deferred and amortized in proportion to the amortization of the leased asset if a capital lease results from the sale-leaseback.

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Definitions:

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Scientists who study the mental processes involved in perception, memory, judgment, and decision making.

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Psychologists who study how social, cultural, and environmental factors influence individual behavior and mental processes.

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