Under International Accounting Standards, If a Sale-Leaseback Results in an Operating

Multiple Choice

Under international accounting standards, if a sale-leaseback results in an operating lease then

A) any profit on the original sale is deferred and recognized over the life of the subsequent lease.
B) assuming the original sale was clearly at fair value, any profit is recognized immediately even when the leaseback results in an operating lease.
C) any profit on the original sale is deferred and recognized over the life of the leased asset.
D) any profit on the original sale is not recognized in the financial statements.