A sale and repurchase agreement can be in the form of a sale and leaseback?
- Under a sale and leaseback transaction, an entity sells one of its own assets and immediately leases the asset back.
- This is a common way of raising finance whilst retaining the use of the related assets. The buyer / lessor is normally a bank.
- The leaseback is classified as finance or operating in accordance with the usual IAS 17 criteria.
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