If a Sale and Leaseback Transaction Results in a Finance

question 6

Multiple Choice

If a sale and leaseback transaction results in a finance lease,AASB 117 Leases,provides the following accounting treatment for any excess of sales proceeds over the carrying amount:

• A)recognise directly in retained earnings of the seller-lessee.
• B)defer and amortise over the lease term.
• C)immediately recognise as income by the seller-lessee.
• D)include in the capitalised amount of the leased asset.