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SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease

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Superseded by IFRS 16.

SIC-27 clarifies how an entity determines whether a series of transactions structured as a lease is linked and, therefore, should be accounted for as one transaction to portray the overall economic effect. Examples include some sale and leaseback transactions and lease and leaseback transactions. If accounting for the arrangement as a single transaction is appropriate, SIC-27 clarifies whether lease accounting or other contract accounting principles should be applied. 

Standard history

In April 2001 the International Accounting Standards Board adopted SIC‑25 Income Taxes—Changes in the Tax Status of an Entity or its Shareholders, which had originally been issued by the Standing Interpretations Committee of the International Accounting Standards Committee in July 2000.