Accounting for Receivables Factoring: A Practical Overview ON DEMAND
Available Until
Your Desk
1.0 Credits
Member Price $29.00
Non-Member Price $33.00
Overview
Factoring involves selling customer receivables to a financial intermediary, which then collects payment directly from the customers. This strategy is commonly used to accelerate cash flow. This course offers a high-level overview of the accounting and reporting considerations for accounts receivable factoring, focusing on the criteria for determining whether the transfer qualifies as a “true sale” or should be accounted for as a secured borrowing.
Highlights
Factoring purposes. Factoring considerations. Applicable U.S. GAAP. Sale condition requirements. Legal isolation of the assets. True sale opinion. Right to pledge or exchange. Effective control. Factoring arrangements that qualify as a sale. Re-recognition events. Factoring arrangements not qualifying as a sale.
Prerequisites
None.
Designed For
CPAs, CFPs, CEOs, and other accounting professionals.
Objectives
Identify the U.S. GAAP area applicable to factoring arrangements. List the specific conditions that must be met for a factoring arrangement to qualify as a sale. Recognize key evaluation considerations relating to true sale opinions. Recognize the accounting impacts from a factoring transaction.
Preparation
None.
Notice
None.
Leader(s):
Leader Bios
Kelen Camehl, Western CPE
Kelen is a recognized author and reviewer of CPE courses and has authored over 85 courses (225+ CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen has also remained involved in CPA exam content development for nearly 10 years and has authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s “Journal of Accountancy”.
Kelen has over 15 years of progressive finance and accounting experience. He currently serves as an Accounting Policy Consultant with HP, Inc. in Dallas, TX. Most recently he was located in Budapest, Hungary on a three-year international assignment and served in the company’s Houston, TX location prior to this assignment. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.
Non-Member Price $33.00
Member Price $29.00