According to standard, determining whether receivables that are transferred can be derecognized and accounted for as a sale is based on... • a. whether the seller has transferred substantially all the risks and rewards of ownership of the receivables. • b. whether the seller has transferred the receivables to factoring company or bank. • c. whether the seller has received cash from factoring company or bank. • d. whether the seller has received cash from customer.
Added by Muhammad Faris S.
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The same applies to receiving cash from a customer (option d). These actions might be part of the process, but they are not the determining factors. Show more…
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