A sale and leaseback transaction involves the sale of an asset and the leasing back of the same asset. If the arrangement meets the IFRS 15 criteria to be recognised as a sale , how should any 'profit’on the sale be treated?
A.
Recognise whole amount of profit immediately in profit or loss
B.
Defer profit and amortise over the lease term
C.
Recognise proportion relating to right of use retained
D.
Recognise proportion relating to right of use transferred