Servicing and Transferring of Assets Flashcards
1
Q
What is the Measurement Definition?
A
If the Transferor surrenders control = Sale and recognize transaction in Income
If the Transferor does not surrender control = Borrowing
2
Q
What Determines if a Transferor has surrendered control?
A
Assets isolated from transferor
Transferee has a right to pledge or exchange assets when received
Transferor does not maintain control.
3
Q
If Transfer qualifies as a sale then the transferor should
A
Not recognize an entire group of assets
Recognize in earnings gains/losses
Recognized and initially measure at Fair Value
