Why this is mistaken
Map the transferred interests and establish legal isolation, transferee rights, and effective control before computing a sale. Cash can fund a borrowing.
Where to watch
When this mistake may appear
- The factor paid us.
- Customers now pay the factor.
Check your work
Your work may contain this mistake if:
- Derecognizes from cash alone.
- Has no isolation evidence.
- Ignores transferee rights or effective control.