CERTYNEX IFRS ACADEMY

Fidalys bank pays 4,000,000 to a manufacturer to acquire its factory, which the manufacturer immediately leases back. The IFRS 15 analysis concludes that the transfer is not a sale. How does Fidalys, the buyer-lessor, account for the arrangement?

It recognises the factory as an asset and accounts for the leaseback under the lessor accounting requirements.

It does not recognise the factory and recognises a financial asset equal to the transfer proceeds, applying IFRS 9.

It recognises a net investment in the lease of 4,000,000.

It recognises the factory as an asset and a financial liability towards the manufacturer.