Under International Accounting Standards,if a Sale-Leaseback Results in an Operating

question 4

Multiple Choice

Under international accounting standards,if a sale-leaseback results in an operating lease then

• A) any profit on the original sale is deferred and recognized over the life of the subsequent lease.
• B) any profit on the original sale is not recognized in the financial statements.
• C) any profit on the original sale is deferred and recognized over the life of the leased asset.
• D) assuming the original sale was clearly at fair value,any profit is recognized immediately even when the leaseback results in an operating lease.

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