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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 Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset (+) | 100,000.00 | - |
| Accumulated Depreciation | Contra-Asset (-) | 20,000.00 | - |
| Building (Asset) | Asset (-) | - | 80,000.00 |
| Gain on Sale-Leaseback | Revenue (+) | - | 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
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.