Question:A transfer of financial assets in accordance with SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities may be treated as a sale if the transferor surrenders control of the assets. Which of the following is one of the criteria that must be met before control is deemed to be surrendered?
A The transferred assets are isolated from the transferor and its creditors expected in bankruptcy.
B The transferee cannot pledge or exchange the transferred assets.
C The transferor is not a party to an agreement that both entitles and obligates it to repurchase or redeem the securities prior to maturity.
D The consideration received by the transferor consists solely of beneficial interests in the transferred assets.
+ AnswerB
+ Explanation
+ Report
Total Preview: 721