The IFRS themselves do not mention "factoring". The new model for classification and measurement of financial assets introduced by IFRS 9 may have impact on how factored receivables are presented in the financial statements. New impairment guidance also introduces additional complexities.
This publication explains how to apply the IFRS 9 general recognition and de-recognition criteria to financial assets transferred under factoring agreements. Relevant considerations and accounting treatment by the Seller of receivables and the Factor are presented.
For more information please contact Dick Korf, (020) 656 7334 or Valeria Kornooukhova, (020) 656 4054.