Nisha Sharma posted an Question
October 11, 2021 • 12:56 pm 30 points
  • UGC NET
  • Commerce

Accounting treatment of lease back ..please xplain by giving xamples

accounting treatment of lease back ..please xplain by giving xamples

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  • Rucha rajesh shingvekar

    A leaseback is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser. ... In a sale-leaseback transaction, the seller of the asset becomes the lessee and the purchaser becomes the lessor. One usually makes a leaseback transaction for high value fixed assets such as real estate and goods like airplanes and trains. ... For example, X owns a land. Under the leaseback transaction, X will sell the land to Y and will get a lease on the same land from Y for a long term.

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