Factoring involves selling customer receivables to a financial intermediary, which then collects payment directly from the customers. This strategy is commonly used to accelerate cash flow. This course offers a high-level overview of the accounting and reporting considerations for accounts receivable factoring, focusing on the criteria for determining whether the transfer qualifies as a “true sale” or should be accounted for as a secured borrowing.
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Learning Objectives Learning Objectives
Upon completion of this course, you will be able to
Identify the U.S. GAAP area applicable to factoring arrangements
List the specific conditions that must be met for a factoring arrangement to qualify as a sale
Recognize key evaluation considerations relating to true sale opinions
Recognize the accounting impacts from a factoring transaction
Course Details
Course Number
KC94
Course Format
Online
Test Format
Online
CPE Credit
1 Credit
Level
Basic
NASBA Field of Study
Accounting
Instructional Method
QAS Self Study
Our Price
$29.95
Credit Hours
1 Hour
Author/Instructor
Kelen F. Camehl, CPA
Publication Date
January 2025
Program Prerequisites
None
Advanced Preparation
None
You Save
$11
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This course offers a high-level overview of the accounting and reporting considerations for accounts receivable factoring.