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Professor, in this video towards the end you talk about repurchase agreements. So I wanted to ask if simply the option to repurchase an asset would itself be sufficient to prevent a company from recognising the transfer of asset as a revenue transaction?
Or i mean the the likelihood of co. exercising the option should be high enough, so as to prevent the co. for recognising any revenue on transfer of asset.
Every situation is different
But right to repurchase BELOW MARKET VALUE would make me think that there was no sale in the first place.