Under IFRS, Transfer of Risks and Rewards of Ownership, Rather

question 40

True/False

Under IFRS, transfer of risks and rewards of ownership, rather than transfer of control, is the primary factor determining whether a factored receivable can be treated as sold rather than as part of a secured borrowing.

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Definitions:

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Natural Law

A philosophy asserting that certain rights or values are inherent by virtue of human nature and can be universally understood through reason.

Ethical Dilemma

A situation where a person faces conflicting moral choices and no option seems ethically superior to others.

Authority

The power or right to give orders, make decisions, and enforce obedience, or an organization or person having this power.