CERTYNEX IFRS ACADEMY

Corvelle transfers a hangar to Stanor and then leases it back from Stanor for 7 years. Which of the following statements correctly describes the scope of the requirements on sale and leaseback transactions?

Only Corvelle, the seller-lessee, applies these requirements; Stanor applies the general lessor rules without any regard to the transfer.

Corvelle and Stanor both account for the transfer contract and the lease under the requirements specific to sale and leaseback.

These requirements only cover transfers that meet the criteria for a sale.

These requirements only apply if the leaseback is a finance lease.