Use the same information from E9- 10 and now assume that Sawyer’s Fence Company reports under IFRS.
Required
a. Determine whether Sawyer’s borrowing from Hannibal would be treated as a borrowing or sale under IFRS. Prepare any journal entries needed at the initiation of the arrangement.
b. Prepare the journal entries to record the collection of the receivables and the payment to Hannibal.