In a sale and lease back case, is it necessary to complete actual sale and purchase (i.e.change of ownership) in documents or simple accounting entries are suffcient to recognize an transaction a sale and lease back.
Please support your comments with legal reference.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by mzameer786</i>
<br />In a sale and lease back case, is it necessary to complete actual sale and purchase (i.e.change of ownership) in documents or simple accounting entries are suffcient to recognize an transaction a sale and lease back.
Please support your comments with legal reference.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">In sales and lease back the leasing company purchases your owned asset at an agreed price. Without actual sale and purchase it cannot pay the sales price.
Sorry, cannot quote legal references.