We have two Companies which we account for - Company A and B. Company B is 50% owned and a propertly management company - responsible for the management of two large office blocks which are owned by another party.
Anyway - Company B doesnt have the money currently to buy an asset which is needed for the car park (Barrier).
My thoughts were could company A buy the asset and lease the asset to Company B without it being treated as an asset for Company B? ie like an Operating Lease as opposed to a finance lease. Company A would obviosuly have to stay as the owner of the property throughout its life and charge a lease to Company B??
Any thoughts on this appreciated.