Response to the following problem:
S Ltd sells a fixed asset to B (self employed) with the option that S would purchase it back for the same amount at a certain point if B requires it . According to IFRS 15 this is a "put option" repurchase agreement, where the buyer (B) does no have significant economic benefit from the repurchase, therefore it counts as an outright sale with a right to return. If S records this transaction as sales in their books do I follow the logics correctly, that the buyer should record it as a purchase of a fixed asset in the Statement of Financial Position?
Is there any other records should be added to the books by the buyer?
What if later the buyer decides to choose the option that S should repurchase the fixed asset. What will be then the records on the books?