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FAR.2920 - Generating Cash From Receivables. PDF

4 Pages·2020·English
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by ['Eyes Saw']| 2020| 4 pages| English

About FAR.2920 - Generating Cash From Receivables.

An entity would sell its receivables to another company in order to accelerate the receipt of cash from receivables when it is tight on money and normal credit is unavailable or too expensive. For an entity to derecognize a financial asset, it must transfer the contractual rights to the cash flows from the asset. An entity transfers a financial asset if it transfers the contractual rights to the cash flows or retains those rights but assumes an obligation to pay the cash flows to recipients in a way that meets pass-through conditions. Examples where an entity has retained substantially all risks and rewards of ownership include sale-and-repurchase transactions with fixed repurchase prices and sales together with total return swaps that transfer market risk back to the entity

Detailed Information

Author:['Eyes Saw']
Publication Year:2020
Pages:4
Language:English
Format:PDF
Price:FREE
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