Transactions of this kind can take many forms, but the essential feature which unites them is that the company which purports to have sold the asset in question has not relinquished all the risks and rewards associated with the asset in the manner which would have been expected of a normal sale. This may be because it has the right and/or the obligation to reacquire the asset at some time or because it will continue to participate in the profit or loss earned on the asset’s subsequent sale to a third party.
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- 1.FRED 4, Application Note B, para. B1.Google Scholar
- 2.Ibid., para. B19.Google Scholar
- 3.Ibid., para. B7.Google Scholar
- 4.Ibid., para. B5.Google Scholar
- 5.Ibid., para. B16.Google Scholar
- 6.Ibid., para. B22.Google Scholar
- 7.Ibid., para. B23.Google Scholar
- 8.Ibid., para. B24.Google Scholar
- 9.SFAS 49, Accounting for Product Financing Arrangements, FASB, June 1981, para. 3.Google Scholar
- 12.SFAS 66, Accounting for Sales of Real Estate, FASB, October 1982, para. 6.Google Scholar