Statements of Position

Files

Download

Download Full Text (324 KB)

Description

A number of methods have been developed whereby an entity finances inventory of product or materials without reporting in its balance sheet the liability or the related inventory. For example, a company transfers ("sells") a product to another party and simultaneously agrees to repurchase the product at a specified price over a specified period. For transactions of that type, the accounting standards division believes guidance is necessary to determine whether the company that "sells" the product and simultaneously agrees to repurchase the product has, in substance, transferred all the risks and rewards of ownership of the product. Based on that determination, a decision can be reached on whether the transferor should account for the transaction as a sale or as a financing transaction.

ISBN

ed78-03-30

Publication Date

1978

Relational Format

Book

Keywords

Repurchase agreements -- United States -- Accounting

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants; Exposure draft (American Institute of Certified Public Accountants), 1978, Mar. 30

Proposed statement of position on accounting for product repurchase agreements ;Accounting for product repurchase agreements

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.