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Not the best angle, but I'd say it's definitely hanging off the back of the table. Remember - a 27" iMac is heavy - if you want the back of the stand hanging off the table, hopefully you have a wall in the back to catch it if it tips over.
 
Ikea desks are junk, be careful. I just bought and then returned 5 of them. They are wobbly, and not like they used to be
 
You will be sitting too close to the monitor.

I have a 24" and view it comfortable from about 18" away.
 
Picture, here it is.

I can't tell if thats a super tight squeeze though and would really appreciate if anyone has this setup, if they could post a picture to see what it looks like overall.

To be honest, it's small for iMac 27 in point of depth view, but up to ingenuity.
 
I have 2 27" iMacs running side by side on one. There's not much space for the keyboard in front and you are sat quite close to the screen but it works.
 
I use Alex desk and I'm happy with it.
http://www.ikea.com/us/en/catalog/products/40260717/
IMG_1066.JPG
 
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