Overview

leaseback


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Quick Reference

An arrangement in which the owner of an asset (such as land or buildings) sells it to another party but immediately enters into a lease agreement with the purchaser to obtain the right to use the asset. Such a transaction is a method for raising funds and can affect the financial statements of a company, depending on whether a finance lease or an operating lease is entered into.

Subjects: Financial Institutions and Services — Accounting.


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