whats the critical items we need to know about sale leasebacks?  whether a gain is deferred or not?

Also, questions related to this on practice exams, I have only seen these where much of the information is provided to you (ie pv and carrying value).  Has anyone seen a more difficult problem than this?  One that we must calc the present values, etc?

Just wondering if it's worth my time to focus on this for a possible simulation question.  I know leases can be simulations, I just don't know if it's leasebacks or just leases....

cinnamon wrote: Sale and leasebacks are withn the scope of FAS 13 as well as normal leases. So my guess is that yes, sale and leasebacks can be tested. The major issue of sale and leasebacks is of course the recognition or deferral of gains realized and related disclosures.

Since I posted I found some good examples with the amount of revenue recofnized, I think I have a better grasp of it now.