Description
Factoring is a type of transaction where an entity sells it customer receivables to a financial intermediary who then in turn collects payment from the entity’s customers. Many entities employ this strategy to accelerate cash collection. This course provides an overview of the accounting and reporting requirements with respect to accounts receivable factoring programs as well as the conditions that must be met in order to recognize the transfer of these financial assets as a “true sale” instead of a secured borrowing.
Learning Objectives
Upon completion of this course, you will be able to:
• Recognize key characteristics as well as advantages/disadvantages of factoring arrangements
• Identify the U.S. GAAP area applicable to factoring arrangements
• List the three specific conditions that must be met for a factoring arrangement to qualify as a sale
• Recognize key evaluation considerations relating to true sale opinions
• Identify examples of continuing involvement
• Recognize the impact from a failed sale in a factoring arrangement
To complete this course participants need to: Read the material provided and answer chapter review questions, successfully complete the qualified assessment with a minimum of 70% accuracy to receive your certificate.
A course evaluation form is provided for your feedback, upon course completion. Participants have 1 year from the date of purchase/enrollment to complete this course
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