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case #4 - of receivables to receive payment from the...

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Shiozaki, Karen Acct 300A 4/28/08 Case #4 a) The concept of the transfer of receivables was first address in FASB statement of financial accounting 125, but was later replaced by financial statement 140. b) a. A transfer is defined by FASB statement 140 paragraph 364 as, “The conveyance of a noncash financial asset by and to someone other than the issuer of that financial asset. Thus, a transfer includes selling a receivable, putting it into a securitization trust, or posting it as collateral but excludes the origination of that receivable, the settlement of that receivable, or the restructuring of that receivable into a security in a troubled debt restructuring.” b. Recourse is defined by FASB statement 140 paragraph 113 as, “The right of a transferee
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Unformatted text preview: of receivables to receive payment from the transferor of those receivables for (a) failure of debtors to pay when due, (b) the effects of prepayments, or (c) adjustments resulting from defects in the eligibility of the transferred receivables.” c. Collateral is defined by FASB statement 140 paragraph 364 as, “Personal or real property in which a security interest has been given.” c) Examples of continuing involvement found in statement 140 paragraph 117 as, “recourse or guarantee obligations, servicing, agreements to repurchase or redeem, retained subordinated interests, and put or call options on the assets transferred.”...
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