If a Sale and Leaseback Transaction Results in a Finance

question 4

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

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Definitions:

Private Health Insurance

Health insurance coverage provided by non-governmental organizations, offering a range of benefits and coverage options beyond what is typically available through public health services.

Health Care Costs

The expenses associated with medical care, including the costs of treatments, medications, hospital stays, and administrative fees.

Health Care Spending

The total amount of money spent on medical services, treatments, drugs, and other related healthcare services by individuals, insurers, and government agencies.

Health Care Industry

The sector comprising medical services, manufacturing of medical equipment or drugs, insurance, and other goods and services designed to maintain or improve health.