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Sagot :
An organization may buy a car and rent it out to another person on an operating lease. The company becomes a lessee-sublessor and is subject to sale and leaseback accounting, as explained in this chapter, if it sells the vehicle to a bank and subsequently leases it back under an operating lease.
An asset is sold by an entity and immediately leased back from the buyer in a sale-leaseback transaction. The buyer then assumes the role of the lessor, while the seller switches roles. In essence, a sale and leaseback occurs when a business sells commercial property that they now own and occupy to a third party who then agrees to lease the property back to the business once the transfer is complete so that they may continue to use it. With a leaseback, also known as a sale-leaseback, the terms of the agreement, including the lease payments and lease term, are finalized right away once the asset is sold. In a sale-leaseback arrangement, the buyer becomes the lessor and the asset seller the lessee.
To learn more about leaseback click the link below:
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