Challenging ASC 840 situations

The first part of this series we cover the basics of sale-leasebacks that do not involve real estate and the current guidance for sale-leasebacks that involve real estate. Sale-leasebacks are very popular and offer a way to recover the capital spent on assets and improvements while continuing to occupy and/or control the property under a long-term lease. They are used as a vehicle to recapitalize, improve balance sheets, and fuel expansion efforts. The basic structure of a sale-leaseback is evident