Ilmanov Ltd. sold a building to a bank at the beginning of 2011 at a gain of

Question:

Ilmanov Ltd. sold a building to a bank at the beginning of 2011 at a gain of $50,000 and immediately leased the building back for a period of five years. The lease is accounted for as an operating lease.
a. Determine the amount of gain on the sale and leaseback that Ilmanov should recognize in 2011 under (1) U.S. and (2) IFRS.
b. Determine the adjustments that Ilmanov would make in 2011 and 2012 to reconcile net income and stockholders' equity under U.S. to IFRS.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...