Accounting for QSPE

soverby

If a firm sells AR to a QSPE the firm's AR decreases and cash increases right?

FinancialAnaly

QSPE's are not allowed under US GAAP. Depending on whether or not the receivables were sold with recourse, the seller may have to treat it as a collateralized borrowing.

NO EXCUSES

madaochenggong

My thinking here is if they eliminate QSPE's then AR will be higher and cash lower.



Edited 1 time(s). Last edit at Wednesday, May 26, 2010 at 08:20AM by mambovipi.

economicz

thanks a lot!