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Sale-Leaseback Transaction (Gain Recognition)

Selling an office building and immediately leasing it back from the buyer to free up cash.

Account NameTypeDebit ($)Credit ($)
CashAsset (+)100,000.00-
Accumulated DepreciationContra-Asset (-)20,000.00-
Building (Asset)Asset (-)-80,000.00
Gain on Sale-LeasebackRevenue (+)-40,000.00

💡 Accountant's Note

Under IFRS 16, a sale-leaseback is only a 'sale' if it meets revenue standards. The gain is often restricted to the portion of the rights transferred to the buyer-lessor.

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Expert Analysis by Qusai Ahmad

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Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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