CERTYNEX IFRS ACADEMY

Ostréa's year-end is approaching. During the year it transferred its head office (carrying amount 900,000) for 1,500,000 to an investor and leased it back; the IFRS 15 analysis in the file concludes that the transfer is not a sale. The accountant derecognised the building, recognised a gain of 600,000, then recognised a right-of-use asset and a lease liability. Which correction do you propose?

No correction: the leaseback justifies the right-of-use asset and the lease liability, and the gain has been earned.

Reverse the derecognition of the building, the gain, the right-of-use asset and the lease liability, and recognise a financial liability of 1,500,000.

Keep the derecognition of the building but defer the gain of 600,000 over the lease term.

Keep the building as an asset while retaining the right-of-use asset and the lease liability, with no financial liability.