Module VI· Capex & Depreciation ScheduleAdvanced
Question
How do you model sale-and-leaseback in the PP&E schedule?
Answer
Remove the sold asset from PP&E, record cash proceeds, recognize gain / loss subject to accounting rules, and add a right-of-use asset and lease liability for the leaseback if applicable. Future rent becomes D&A and interest under IFRS 16. In valuation, remember the cash inflow comes with future lease obligations.