The changing interest rate environment, tight capital market, and opportunity to monetize asset appreciation are now making sale and leaseback transactions more economically viable. Companies that recently completed a transaction or are contemplating a deal should know that the accounting for sale leasebacks was modified with the introduction of ASC 842, Leases. To qualify for day-one gains on a sale and leaseback transaction, certain criteria have to be met. Download the PDF below for a refresher and a helpful decision tree.
If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.