Both sale-leaseback and build-to-suit transactions are treated differently under the new standards. These new requirements may impact how the lessor and lessee account for the underlying asset on the balance sheet.
1. How does accounting of sale-leaseback transactions change under the new standards? Consider when gains and losses are recognized, as well as if the lease is classified as a finance lease.
2. How has the change from a risk-oriented test to a control-oriented test shifted the definition of asset owner for build-to-suit agreements? How is control over the asset determined?
3. Is there an option on the asset? What events are capable of triggering the option? What is the exercise price on the option?