I searched up many post and read through peoples answers, but stil not clear about the impact on BS when we seuritized recivable, and sold the receivable. Does a SPE involved in both transactions?
Q16 answer said “Had the securitized receivables been held on the balance sheet, assets would have been $267,500 higher, or $3,878,100, and equity would have been unchanged”
Q17 answer said “If the receivables had been held on the balance sheet, both assets and liabilities would have been $267,500 higher”
I can only assume they borrow money against the securitized receivables and that increase both cash and liability? Is that also mean A/R will decreased and HFT securities increased?
***Can anyone make an example or explain on what will be changed on BS when we***
-
seuritized recivables
-
sold the receivables
on both unconsolidated and consolidated (with SPE) financial statement?
Thank you!