Guideline PSG 5 - Sale-leaseback transactions
Effective date: |
April 1, 2005 |
Published by the PSAB: |
June 2005 |
Overview
The purpose of this Guideline is to define a sale-leaseback transaction and describe how to account for such transactions when the leaseback involves either a leased tangible capital asset or an operating lease.
A sale-leaseback transaction is the sale of property by a government and the leasing of the same property, or a portion thereof, back to the government.
The "components" approach is adopted to account for a sale-leaseback transaction. [PSG 5.5] The components approach assumes that the sale and leaseback can be separated objectively by comparing the terms and conditions of the sale-leaseback to its related fair value information. The comparison enables each component part of the transaction to be accounted for according to its economic substance. The components of a sale-leaseback transaction include the property, lease liability, revenues and expenses (including gains and losses), and any other assets or liabilities that may result from the transaction.
History of Guideline PSG 5
Date |
Development |
Comments |
June 2005 |
New Guideline |
This new Guideline relates to sale-leaseback transactions. |
February 2007 |
Amendments |
Editorial revisions. |
Note: The above summary does not include details of consequential amendments made as the result of other projects.