CERTYNEX IFRS ACADEMY

In the draft note of Aubrac Logistique, a sale and leaseback of a warehouse is presented as a sale on the grounds that the contract is entitled sale agreement and that the buyer-lessor is an independent third party. Which correction of the justification do you propose?

None: the title of the contract and the independence of the buyer are enough to establish a sale.

Replace the justification with the leaseback term, which is much shorter than the economic life of the warehouse.

Base the conclusion on the IFRS 15 analysis of when the performance obligation to transfer the warehouse is satisfied.

Conclude on a sale only if the buyer-lessor classifies the leaseback as a finance lease.