F6/M3 Sale-Leaseback

Question 1

Common example of a sale-leaseback transaction

Answer 1

Airline “sells” airplanes to bank, then leases back from bank

Question 2

10 - 90 rule only applies to US GAAP

Answer 2

True;
IFRS Finance Lease (Capital)
- defer all gains

IFRS Operating Lease
- Recognize gain if short term