To finance its growth, the dairy cooperative Brumelac sells its packaging unit to a finance company and continues to operate it under a 6-year lease. Data: sale price 900,000, equal to fair value; carrying amount of the unit 360,000 (net, in a single account); present value of the lease payments payable at the end of each year 270,000. The IFRS 15 analysis concludes that there is a sale, and the proportion retained is measured, as an assumption, by the ratio of the present value of the lease payments to fair value. Record the transaction in Brumelac's books.
- Sale price (equal to fair value)
- 900,000
- Carrying amount of the unit
- 360,000
- Present value of the lease payments
- 270,000