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Dunkura plc sells a building to Dajanso plc for GH800,000 cash. The carrying amount of the building prior to the sale was GH600,000. Dunkura plc
Dunkura plc sells a building to Dajanso plc for GH800,000 cash. The carrying amount of the building prior to the sale was GH600,000. Dunkura plc arranges to lease the building back for five years at GH120,000 per annum, payable in arrears. The remaining useful life is 15 years. At the date of sale, the fair value of the building was GH750,000 and the interest rate implicit in the lease is 4%. The cumulative present value of GH1 in five years' time is GH4.452. The transaction satisfies the performance obligations in IFRS 15. Show the effect of the above transactions in the financial statements at the date of the sales
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