Question: BRIDGE TO THE PROFESSION
Professional Research: FASB Codification
As the new staff person in your company's treasury department, you have been asked to conduct research related to a proposed transfer of receivables. Your supervisor wants the authoritative sources for the following items that are discussed in the securitization agreement.
Instructions: If your school has a subscription to the FASB Codification, go to https://aaahq.org/asclogin.cfm to log in and prepare responses to the following. Provide Codification references for your responses.
(a) Identify relevant Codification section that addresses transfers of receivables.
(b) What are the objectives for reporting transfers of receivables?
(c) Provide definitions for the following:
(1) Transfer.
(2) Recourse.
(3) Collateral.
(d) Provide other examples (besides recourse and collateral) that qualify as continuing involvement.