As the new staff person in your company\'s treasury department, you have been as
ID: 2545654 • Letter: A
Question
As the new staff person in your company's treasury department, you have been asked to conduct research related to a proposed transfer of receivables. Your supervisor wants the authoritative sources for the following items that are discussed in the securitization agreement. Access the FASB Codification athttp://asc.fasb.org/home to conduct research using the Codification Research System to prepare responses to the following items.
Provide Codification references for your responses.
(a) Identify relevant Codification section that addresses transfers of receivables.
(b) Provide definitions for the following:(i) Transfer(ii) Recourse(iii) Collateral
(c) Provide other examples (besides recourse and collateral) that qualify as continuing involvement.
Explanation / Answer
a) Codification section : 860 Transfers and servicing.
b) 1) Transfer- the conveyance of a non cash financial assets by and to someone other than the issuer of that financial asset.
2) Recourse- the right of a transfee of a receivables to receive payment from the transferor of those receivables for any of the following.
3) collateral - personal or real property in which a security interest has been given.
C) other examples would be :
1) option written or held.
2) agreement to be reacquired transfer aseets.
3) pledges of collateral.
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