Which of the Following Is Not True Regarding Accounting for Transfers

question 12

Multiple Choice

Which of the following is not true regarding accounting for transfers of receivables under IFRS?

• A) Transfers of receivables sometimes are treated as a sale of receivables.
• B) Transfers of receivables sometimes are treated as a secured borrowing.
• C) Transfers of receivables can be treated as a sale if the transferee is a QSPE.
• D) Transfer of substantially all the risk and rewards of ownership is an important consideration.

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Definitions:

Henri Fayol

A French engineer and management theorist renowned for developing a general theory of business administration and identifying the five primary functions of management.

Centralisation

The process of consolidating control and decision-making authority at the upper levels of an organization or government.

Espirit de Corps

A feeling of pride, fellowship, and loyalty shared by members within a group or organization.

Mary Parker Follett

An early 20th-century social worker and management consultant known for her theories on democratic organization and the power of collective action.