If the transfer qualifies as a sale under TFRS 15, the seller-lessee recognises only the gain relating to the rights transferred; otherwise the transaction is accounted for as financing. It is often used to raise funding against real estate.
Source: TFRS 16, TFRS 15
Related terms
Leases (TFRS 16)The standard requiring lessees to present almost all leases in the statement of financial position as a right-of-use asset and a lease liability.Revenue from contracts with customers (TFRS 15)The standard requiring revenue to be recognised to depict the transfer of goods or services to customers, at the amount the entity expects to be entitled to.RefinancingRepaying existing debt with new financing, usually on more favourable terms.Accounting estimatesThe determination by management judgement of amounts that cannot be measured precisely, such as provisions, useful lives, expected credit losses and fair values.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Accrual basis of accountingThe principle of recording transactions as income, expenses, assets and liabilities in the period in which they occur, rather than when cash is received or paid.
Last updated: November 8, 2026 · This definition is for general information only.