CERTYNEX IFRS ACADEMY

Pellane sells its head office to an investor and immediately leases it back. To determine whether the transfer of the building is to be accounted for as a sale, which requirements does Pellane refer to?

The lessor's lease classification criteria (finance lease or operating lease).

Only the transfer of legal title evidenced by the notarial deed.

A threshold for the leaseback term set by IFRS 16 relative to the life of the building.

The requirements of IFRS 15 for determining when a performance obligation is satisfied.