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 generally considered as the interest of the loan. The products sold only serve as collateral. Under normal circumstances, the money received during the accounting treatment of after-sale repurchase should be recognized as liabilities (other payables).

When issuing goods:

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. Interest will be accrued monthly for the difference between the repurchase price and the selling price:

Debit: financial expenses

Credit: other payables

Buy back goods

Debit: financial expenses

Credit: other payables

Debit: Other payables

Taxes payable-VAT payable (input tax)

Loan: bank deposit

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 recognizing the income of the sold goods, the sold goods will be recognized at the selling price, and the repurchased goods will be treated as purchased goods.

After-sale leaseback

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

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

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

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

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

Accounting treatment of leaseback after sale;

Debit: Bank deposits (accounts receivable)

Loan: inventory goods

Taxes payable `-VAT payable (output)

deferred income

Deferred revenue amortizes during the lease term to offset accumulated depreciation or rent.

Borrow: deferred revenue.

Accumulated depreciation (other business costs)