Page 138 - FR Integrated Workbook 2018-19
P. 138
Chapter 10
Factoring
6.1 Factoring overview
Factoring
With Without
recourse recourse
Risk and reward,
Risk and reward, and therefore
and therefore Risk? control,
control, not transferred to
transferred to the Non-payment factor.
factor.
Reward? Receivables
Receivables not derecognised, treat
derecognised, treat Payment proceeds as a
proceeds as a loan. reduction in
receivables.
Illustrations and further practice
For homework try TYU question 6 from Chapter 10.
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