CERTYNEX IFRS ACADEMY

Fenwald buys a fleet of forklift trucks, puts them into service in its warehouses and operates them for 4 months. It then transfers them to Rentaxis, which leases them back to Fenwald for 5 years. How should the arrangement be characterised?

As a sale and leaseback transaction, to be accounted for under paragraphs 98 to 103.

As a simple lease between Rentaxis and Fenwald, the initial purchase being ignored.

As an arrangement outside the scope of IFRS 16, since the trucks have already been used.

As a sale and leaseback only if Rentaxis negotiated the purchase directly with the manufacturer.