ifrs

Assessment: Certificate in International Financial Reporting Think Ahead Question 4. In 20x5 Leasy Co sells and leases back a manufacturing asset by way of a lease. The transfer does not qualify as a sale in accordance with IFRS 15. The sale proceeds were in excess of fair value and exceeded carrying amount of the asset. Which of the following statements is true? The sale proceeds are recognised as a financial liability The excess of sale proceeds over fair value are recognised as a financial liability A right of use asset is recognised The asset is derecognised and a gain or loss on disposal arises