In deciding whether financing with receivables is a secured borrowing or a sale under U.S. GAAP, the critical element is the extent to which:

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The critical element in deciding whether financing with receivables is a secured borrowing or a sale under U.S. GAAP is whether the transferor of the receivable surrenders control over the assets transferred. If the transferor retains control, it is considered a secured borrowing. If the transferee has unconditional ownership and control over the assets, it is considered a sale. Factors such as the age of receivables transferred or the transferee's reliance on funds from the transferor are not as critical in making this determination.

In Deciding Whether Financing with Receivables Is a Secured Borrowing