Introduction Sale and leaseback transactions have long been used by businesses as a financing tool to unlock cash tied up in assets while retaining the right to continue using those assets. Common examples include: Manufacturing companies selling factories and leasing them back Airlines selling aircraft and leasing them back Retailers selling store properties and leasing them back Logistics companies selling warehouses and leasing them back Although these arrangements can imp

Introduction Leasing is one of the most common financing arrangements used by businesses worldwide. Companies lease office spaces, warehouses, vehicles, machinery, equipment, and even data centers instead of purchasing them outright. Before IFRS 16, many leases were classified as operating leases and remained off the balance sheet. This often made companies appear less leveraged than they actually were. To improve transparency and comparability, the International Accounting S