After-sale repurchase belongs to sales in form and financing in essence. It is equivalent to the seller borrowing money from the buyer (customer), and the time of repurchase is the term of the loan. The difference between the repurchase price and the purchase price is usually considered as the interest of the loan. The products sold are only used as collateral. In general, the money received during the accounting treatment of after-sale repurchase should be recognized as liabilities (other payables).

At the time of delivery:

Debit: bank deposit

Credit: other payables

Taxes payable-VAT payable (output tax)

At the same time: borrow: inventory goods

Loan: issue goods.

If the repurchase price is greater than the original selling price, the enterprise shall accrue interest on schedule during the repurchase period and include it in the financial expenses. The difference between the repurchase price and the sales price will bear interest on a monthly basis:

Debit: financial expenses

Credit: other payables

Buy back goods

Debit: financial expenses

Credit: other payables

Debit: Other payables

Taxes payable-VAT payable (input tax)

Loans: bank deposits

At the same time: borrow: inventory goods

Loan: issue goods.

If there is conclusive evidence that the after-sale repurchase transaction meets the conditions for confirming the income of the sold goods, the sold goods will be confirmed at the sales price, and the repurchased goods will be treated as purchased goods.

After-sale leaseback

1. If the after-sale leaseback transaction is confirmed as a financial lease, the difference between the asset selling price and the book value will be deferred and apportioned according to the depreciation progress of the leased asset as an adjustment of depreciation expense. Distribution according to depreciation schedule means that unrealized after-sale leaseback gains and losses are distributed in the same proportion as the depreciation rate used for asset depreciation.

2. The enterprise after-sale leaseback transaction is recognized as operating lease.

If an enterprise's after-sale leaseback transaction is confirmed as an operating lease, it shall be handled separately:

(1) After there is conclusive evidence that the after-sale leaseback transaction is concluded at fair value, the difference between the selling price and the book value of the asset is included in the current profit and loss.

(2) If the after-sale leaseback transaction is not reached at fair value, relevant profits and losses shall be confirmed in the current period; However, if the loss will be made up by future lease payment below the market price, it should be deferred and apportioned in a way consistent with the confirmation of lease expenses within the expected service life of the asset; If the sale price is higher than the fair value, the part higher than the fair value shall be deferred and amortized within the estimated service life of the asset.

Accounting treatment of after-sale leaseback;

Debit: Bank deposits (accounts receivable)

Loans: Goods in stock

Taxes payable `-VAT payable (output)

deferred income

Deferred income is amortized during the lease term to offset accumulated depreciation or rent.

Debit: Deferred income.

Accumulated depreciation (other business costs)