Accounting and reporting of sale and lease back operations

The Law of Financial Leasing, Factoring, and Financial Companies, with number 6361, was put in effect on December 13, 2012, according to which sale and leaseback transaction have been carried out in Turkey. Sale and leaseback transactions constitute one of the preferred financing sources for firms in need of cash. In this thesis sale and leaseback transactions are explained according to the legislation in effect by showing various differences as well in terms of accounting and financial reporting standards, tax advantages it provides, and records of lessor and lessee with the help of a case study.