Assuming all other criteria are met for recognizing the


1. Huling Associates plans to transfer $300,000 of accounts receivable to Mitchell Inc. in exchange for cash. Huling has structured the arrangement so that they retain substantially all the risks and rewards of ownership but shift control over the receivables to Mitchell. Assuming all other criteria are met for recognizing the transfer as a sale, how would Huling account for this transaction under IFRS? Under U.S. GAAP?

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Accounting Basics: Assuming all other criteria are met for recognizing the
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