Question
Why can a sale-and-leaseback fail sale accounting even if an asset is transferred?
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Answer
Control did not transfer to the buyer.
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Question
How are above-fair-value proceeds in an of-market sale-and-leaseback treated?
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Answer
As additional financing, not sale proceeds.
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Question
When does a lessor classify a lease as sales-type rather than direct-financing or operating?
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Answer
When any lessee finance-lease criterion is met.
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Question
Why is a direct-financing lease different from a sales-type lease?
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Answer
Selling profit is deferred into interest income.
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