Sanchez SA (seller-lessee) enters into a sale-leaseback to sell its company headquarters for R$18 million to Harper

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Sanchez SA (seller-lessee) enters into a sale-leaseback to sell its company headquarters for R$18 million to Harper Bank. The carrying value of the headquarters at the date of sale is R$14 million. Sanchez then leases back the headquarters in exchange for R$180,000 per year in rental payments. The leaseback is considered an operating lease. How should Sanchez account for this sale?
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Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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