Question: In deciding whether financing with receivables is a secured borrowing or a sale under IFRS, the critical element is the extent to which: The transferee

In deciding whether financing with receivables is a secured borrowing or a sale under IFRS, the critical element is the extent to which:

  • The transferee has received substantially all the risks and rewards of ownership.

  • The age of the receivables transferred differs from the average age of the receivables.

  • The transferor of the receivable surrenders control over the assets transferred.

  • The transferee relies on assets received from the transferor to maintain operations.

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