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:
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The transferee has received substantially all the risks and rewards of ownership.
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The age of the receivables transferred differs from the average age of the receivables.
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The transferor of the receivable surrenders control over the assets transferred.
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The transferee relies on assets received from the transferor to maintain operations.
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