CERTYNEX IFRS ACADEMY

Torvale transfers a laboratory and leases it back. According to the IFRS 15 analysis provided, the transfer is not a sale. How does Torvale, the seller-lessee, account for the arrangement?

It derecognises the laboratory, recognises a gain or loss on disposal and recognises a financial liability.

It derecognises the laboratory and recognises a right-of-use asset and a lease liability.

It keeps the laboratory in its statement of financial position and recognises a right-of-use asset against a lease liability.

It continues to recognise the laboratory and recognises a financial liability equal to the transfer proceeds, applying IFRS 9.