Question

FASB Research (required):

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.

Instructions

Login to the FASB Codification website. Research and provide Codification references for your responses. Answer to at least 2 questions.

(a) Identify relevant Codification section that addresses transfers of receivables.
(b) What are the objectives for reporting transfers of receivables?
(c) Provide definitions for the following:
   1. Transfer.
   2. Recourse.
   3. Collateral.

(d) Provide other examples (besides recourse and collateral) that qualify as continuing involvement.

Optional: Find a recent article related to this week's topic, post your thoughts on it and the link to the article

Answer 1

a) Codification section : 860 Transfers and union.

c) 1) Transfer- the conveyance of a non money money pluss by and to somebody apart from the institution of that money asset.
2) Recourse- the correct of a transfee of a assets to receive payment from the transferrer of these assets for any of the subsequent.
3) collateral - personal or holding within which a stake has been given.

d) different examples would be :
1) possibility written or command.
2) agreement to be reacquired transfer aseets.
3) pledges of collateral.