Ombrelle transfers its research centre to an insurer and leases it back for 9 years; the IFRS 15 analysis in the file concludes that the transfer is a sale. The price received, 2,500,000, equals the fair value of the centre; its carrying amount (presented net in a single account) is 1,000,000. The present value of the lease payments, payable at the end of each year, is 750,000. Case assumption: the proportion of the right retained is the ratio of that present value to fair value. Record Ombrelle's entry at the transaction date.
- Price received (equal to fair value)
- 2,500,000
- Carrying amount of the centre
- 1,000,000
- Present value of the lease payments
- 750,000