An entity sells a building $2million and retains the rights to buy it back for $3million in five years time.At the date of sale,the building had a fair value of$7 million.Property price are expected to rise.
Required ;
Explain on how the above transaction will be treated in the books of an entity.

Answer rating: 100% (QA)

This transaction raises accounting and reporting questions due to the unique selling and buyback stipulationHeres how it might be treated in the books ... View the full answer