Repurchase Agreement |Revenue Recognition | CPA lectures- FAR |Sripal Jain CA, CPA
1.3 هزار بار بازدید -
3 سال پیش
-
Check our Demo class by
Check our Demo class by Sripal Jain , CA,CPA - National instructor Simandhar Education
What is a Repurchase Agreement?
A repurchase agreement is a contract by which an entity sells an asset and also either promise include:
* An entity's obligation to repurchase the asset (a forward);
* An entity's right to repurchase the asset (a call option); and
* An entity's obligation to repurchase the asset at the customer's request (a put option).
What is Call Option?
The entity's accounting for the contract will be based on whether it must (forward) or can (call) repurchase the asset for either:
* Less than the original selling price (it will be a lease); or
* Equal to/more than the original price (it will be a financing arrangement).
What is Put Option?
If the entity has an obligation to repurchase the asset at the customer's request for less than the original selling price, the entity will account for the contract as either:
* A lease (if the customer has a significant economic incentive to exercise the right); or
* A sale with a right of return (if the customer does not have a significant economic incentive to exercise the right).
If the repurchase price is equal to or greater than the original selling price, the entity accounts for the contract as either:
* A financing arrangement (if the repurchase price is more than the expected market value of the asset); or
* A sale with a right of return (if the repurchase price is less than or equal to the expected market value of the asset and the customer does not have a significant economic incentive to exercise the right).
------------------***-----------------***---------------------***---------------------***-----------------------
𝗔𝗯𝗼𝘂𝘁 𝗦𝗶𝗺𝗮𝗻𝗱𝗵𝗮𝗿 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻
Simandhar Education is a leading training provider for US CPA, US CMA, CIA, EA, and IFRS. Simandhar Education always believes in transforming education and providing high standards of learning to the students. We are the channel partner of AICPA and the official partner of Becker Education, the most acclaimed CPA reviewer in the USA. We believe in imparting information and concentrate on grooming individuals and make them fit for the corporate world. The academy provides quality education with more emphasis on practical knowledge. Simandhar Education has a wide network of world-class trainers, teachers, and industry experts, and all the teachers at Simandhar are CPA qualified and rank holders. We also provide guaranteed placement support to the students and personal grooming sessions for the interviews.
𝗦𝗶𝗺𝗮𝗻𝗱𝗵𝗮𝗿 𝗔𝗰𝗵𝗶𝗲𝘃𝗲𝗺𝗲𝗻𝘁𝘀
Simandhar education has over 3000 enrolled students and has successfully placed more than 200 students across reputed firms. We have a team of 10 leading faculties and have effectively conducted 100+ corporate events in the CPA/ CMA domain.
Contact Us: +91- 7780273388
or leave a message on social media.
Make sure to hit the like, share and subscribe to our YouTube channel.
To get more updates on the YouTube Channel click: http://bit.ly/2Mt2BB1
Now you can listen to our podcast at https://bit.ly/36PYQPP
------------------------------ 𝐅𝐨𝐥𝐥𝐨𝐰 𝐮𝐬 ----------------------------------
Make Sure to follow us on our Social Media Channels:
Podcast: https://bit.ly/36PYQPP
Instagram: https://zcu.io/TNgD
Linkedin: https://bit.ly/2Oh9w5d
Facebook: https://zcu.io/gDvX
Twitter: https://zcu.io/17cS
𝐓𝐡𝐢𝐧𝐤 𝐂𝐏𝐀/CMA - 𝐓𝐡𝐢𝐧𝐤 𝐒𝐢𝐦𝐚𝐧𝐝𝐡𝐚𝐫
#cpa #farcpa #financialaccountingandreporting
What is a Repurchase Agreement?
A repurchase agreement is a contract by which an entity sells an asset and also either promise include:
* An entity's obligation to repurchase the asset (a forward);
* An entity's right to repurchase the asset (a call option); and
* An entity's obligation to repurchase the asset at the customer's request (a put option).
What is Call Option?
The entity's accounting for the contract will be based on whether it must (forward) or can (call) repurchase the asset for either:
* Less than the original selling price (it will be a lease); or
* Equal to/more than the original price (it will be a financing arrangement).
What is Put Option?
If the entity has an obligation to repurchase the asset at the customer's request for less than the original selling price, the entity will account for the contract as either:
* A lease (if the customer has a significant economic incentive to exercise the right); or
* A sale with a right of return (if the customer does not have a significant economic incentive to exercise the right).
If the repurchase price is equal to or greater than the original selling price, the entity accounts for the contract as either:
* A financing arrangement (if the repurchase price is more than the expected market value of the asset); or
* A sale with a right of return (if the repurchase price is less than or equal to the expected market value of the asset and the customer does not have a significant economic incentive to exercise the right).
------------------***-----------------***---------------------***---------------------***-----------------------
𝗔𝗯𝗼𝘂𝘁 𝗦𝗶𝗺𝗮𝗻𝗱𝗵𝗮𝗿 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻
Simandhar Education is a leading training provider for US CPA, US CMA, CIA, EA, and IFRS. Simandhar Education always believes in transforming education and providing high standards of learning to the students. We are the channel partner of AICPA and the official partner of Becker Education, the most acclaimed CPA reviewer in the USA. We believe in imparting information and concentrate on grooming individuals and make them fit for the corporate world. The academy provides quality education with more emphasis on practical knowledge. Simandhar Education has a wide network of world-class trainers, teachers, and industry experts, and all the teachers at Simandhar are CPA qualified and rank holders. We also provide guaranteed placement support to the students and personal grooming sessions for the interviews.
𝗦𝗶𝗺𝗮𝗻𝗱𝗵𝗮𝗿 𝗔𝗰𝗵𝗶𝗲𝘃𝗲𝗺𝗲𝗻𝘁𝘀
Simandhar education has over 3000 enrolled students and has successfully placed more than 200 students across reputed firms. We have a team of 10 leading faculties and have effectively conducted 100+ corporate events in the CPA/ CMA domain.
Contact Us: +91- 7780273388
or leave a message on social media.
Make sure to hit the like, share and subscribe to our YouTube channel.
To get more updates on the YouTube Channel click: http://bit.ly/2Mt2BB1
Now you can listen to our podcast at https://bit.ly/36PYQPP
Make Sure to follow us on our Social Media Channels:
Podcast: https://bit.ly/36PYQPP
Instagram: https://zcu.io/TNgD
Linkedin: https://bit.ly/2Oh9w5d
Facebook: https://zcu.io/gDvX
Twitter: https://zcu.io/17cS
𝐓𝐡𝐢𝐧𝐤 𝐂𝐏𝐀/CMA - 𝐓𝐡𝐢𝐧𝐤 𝐒𝐢𝐦𝐚𝐧𝐝𝐡𝐚𝐫
#cpa #farcpa #financialaccountingandreporting
3 سال پیش
در تاریخ 1400/06/10 منتشر شده
است.
1,340
بـار بازدید شده