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    Sale of receivables with recourse

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    The required disclosures for sale of receivables is given in the solution.

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    For sale of receivables with recourse, what is, if any, the required disclosure? Explain the importance of this point.

    STEP 1
    If there is a sale of receivables with recourse, the seller or the transferor should make a disclosure as a sale if three conditions are met that is first, if the seller gives up his control of the future benefits relating to the receivables, second, the transferor can reasonably find out or determine its obligations under the "recourse" provisions, and thirdly, the ...

    Solution Summary

    The legally required disclosures for sale of receivable is given.