Where a Sale and Leaseback Arrangement Involves the Benefits and Risks

question 50

Multiple Choice

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 statement of financial position and amortised.
• D) All of the given answers are correct.

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Definitions:

Treatment Group

In an experimental design, the group of subjects that receives the treatment or intervention being studied, in contrast to the control group.

Milestone

A milestone in project management is a significant event or point in time that marks a phase of progress and is used to monitor project advancement.

Project

A temporary endeavor undertaken to create a unique product, service, or result.

Resource Calendars

Scheduling tools that display the availability and allocation of resources required for project tasks.