Under international accounting standards,the derecognition of receivables requires that

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Under international accounting standards, the derecognition of receivables requires that the risks and rewards associated with the cash flows from the financial asset pass from the transferor to the transferee. This means that the transferor can no longer control or receive any benefits from the receivable, and the transferee becomes responsible for collecting the cash flows associated with the receivable. A binding legal agreement and economic ownership may be required for the transfer of the receivable, but the key requirement for derecognition is the transfer of risks and rewards. The collectibility of the receivable is not relevant for derecognition.

Under International Accounting Standards,the Derecognition of Receivables Requires That