(Solution Download) 1 Does the Kapiti Ltd sale and leaseback arrangement involve


1. Does the Kapiti Ltd sale and leaseback arrangement involve a finance lease or an operating lease? Justify your choice.
2. Critically evaluate the accounting treatment adopted by Kapiti Ltd with respect to the sale and leaseback agreement. Refer, where necessary, to relevant sections of IAS 17.
3. Compare the resulting deferred income account with the Conceptual Framework's definitions of and recognition criteria for the elements of financial statements.

 







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