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Hello sir,
the factored trade receivables sold without recourse to the seller, why they are derecognized?
doesn’t the selling contain the Non-collectible receivables risk? it is a true transaction,
the financier will not return to the seller .Thanks
If they’re moved on without recourse, that means the factor takes on the risk of non-collection
So all the risks and rewards are transferred
OK
Is the following statement true ?
an example of faithful representation :
” Derecognising factored trade receivables sold without recourse to the seller”
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