Under IFRS, transfer of risks and rewards of ownership, rather than transfer of control, is the primary factor determining whether a factored receivable can be treated as sold rather than as part of a secured borrowing.

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According to IFRS, the transfer of risks and rewards of ownership is the primary factor in determining the treatment of a factored receivable, not the transfer of control. Therefore, if the risks and rewards of ownership have been transferred, the receivable can be treated as sold rather than as part of a secured borrowing.

Under IFRS, Transfer of Risks and Rewards of Ownership, Rather