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Determining whether a sale took place and whether the selling taker transferred control of ASC Topic 606 and ASC Topic 842 to the buyer-leaseholder is complex and affects the initial and subsequent accounting processing of the SLB transactions. In addition, several other factors determine the proper accounting of the leasing phase of an SLB transaction, such as superannuation provisions. B, such as call options, futures and put options. Leaseback is very often used in commercial aviation to recover essentially money invested in assets. Airlines, for example, sell planes and engines to lenders, banks or other financial institutions that, in turn, lease their assets back. Tax deductions can also be made by the airline, since the assets are no longer in possession but in leasing. Due to the high prices of aircraft and engines, especially new ones, money from such leasing is used by airlines to improve their financial performance. In the case of direct leasing, lenders recognize assets and record a net investment in the same way as leasing (ASC 842-30-30-2); However, the owners do not recognize the profit from sale in advance, but postpone and recognize this profit in a ratabel way (with the effective method of interest rates) during the duration of the contract. A lease agreement is an agreement in which the entity that sells an asset can recover the same asset from the buyer. In the case of a leaseback – also known as leasing – details of the agreement, such as rental payments and the duration of the lease, are made immediately after the sale of the asset. In the case of a sale-leaseback transaction, the seller of the asset becomes a taker and the buyer becomes the lessor.

The benefits for the buyer-leaseback include: a loan must be repaid and appears as a debt in the balance sheet of the company. A leasing operation can actually help improve the health of a company`s balance sheet: balance sheet liabilities will decrease (avoiding additional debt) and short-term assets will increase (cash and in the lease). Although the equity is non-refundable, shareholders are entitled to a company`s profits on the basis of their share of its share. SLB transactions fail even if the leaseholder obtains control of the leases or gives guarantees as to their value in the leasing phase of the transaction. When control of an underlying asset is transferred to a selling leasing lender during the leasing phase of the transaction, the SLB transaction fails: the seller leaseholder classifies the transaction as a “financial leasing” and the buying lender calls it a “lease-sale. If control of the underlying asset is not effectively transferred to a seller`s leaseholder, but the underwriter receives a guarantee of the value of the seller`s assets, the transaction also fails: the seller-tenant classifies the transaction as a lease-financing and the buyer-renter calls it a “direct lease-financing”. The buyer-renter and the seller-renter classify rental transactions that have not failed as “business rental.” There are many examples of leasing transactions in corporate finance.