08-03-2007, 05:28 PM
Hi,
Recenly, I am working on a paper for accounting sale-leaseback.
I have read over the FASB Statement 98, but i have few questions.
Question.1
In a sale-leaseback event, isn't if the lease meets one of the four criteria for classifying a lease as a capital lease, the seller-lessee should account for the lease as a capital lease? and if none of the four criteria are met, the lease is an operating lease?
Question.2
I heard my professor said, there is an exception to classify the sale-leaseback to capital leases and operating leases.
May I know what is the exception?
Recenly, I am working on a paper for accounting sale-leaseback.
I have read over the FASB Statement 98, but i have few questions.
Question.1
In a sale-leaseback event, isn't if the lease meets one of the four criteria for classifying a lease as a capital lease, the seller-lessee should account for the lease as a capital lease? and if none of the four criteria are met, the lease is an operating lease?
Question.2
I heard my professor said, there is an exception to classify the sale-leaseback to capital leases and operating leases.
May I know what is the exception?
