Factoring involves selling customer receivables to a financial intermediary, which then collects payment directly from the customers. This strategy is commonly used to accelerate cash flow. This course offers a high-level overview of the accounting and reporting considerations for accounts receivable factoring, focusing on the criteria for determining whether the transfer qualifies as a “true sale” or should be accounted for as a secured borrowing.

Learning Objectives
  • Identify the U.S. GAAP area applicable to factoring arrangements.
  • Discover and list the specific conditions that must be met for a factoring arrangement to qualify as a sale.
  • Recognize key evaluation considerations relating to true sale opinions.
  • Recognize the accounting impacts from a factoring transaction.
Last updated/reviewed: January 29, 2025
Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
COURSE MATERIAL
  Accounting for Receivables Factoring: A Practical Overview (Text Based Course)PDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam