Sale and Leaseback

All topics related to IFRS Standards.
Post Reply
RAVER
Posts: 2
Joined: 11 Aug 2022, 04:22

Sale and Leaseback

Post by RAVER »

Hi,
Co. is entering into a S&L of MV. The S&L is deemed a sale and is at market terms.
The carrying value of the vehicle is $43k, proceeds [FV] is $34k, PV of lease payments is $16k [lease liability to be booked].
Is it possible for the ROUA to be greater than the LL [using the prior CV = $43k x $16k / $34k] = $26k or is the ROUA to be capped at LL?

Also, the contra occurs whereby the CWDV is $0. In this case is the ROUA = LL?

Thanks
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Sale and Leaseback

Post by Leo »

What's CWDV ?
RAVER
Posts: 2
Joined: 11 Aug 2022, 04:22

Re: Sale and Leaseback

Post by RAVER »

Written down value
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Sale and Leaseback

Post by Leo »

how much is the selling price ?
Post Reply