CERTYNEX IFRS ACADEMY

Zeta SA has transferred a portfolio of receivables without transferring or keeping substantially all the risks and rewards. The buyer can resell the whole portfolio to an unrelated third party, but the contract requires it to obtain Zeta's consent for any resale. Which treatment applies to Zeta?

Zeta has lost control, since the buyer can resell the portfolio to an unrelated third party: full derecognition.

Control is not examined at this stage, because the risks and rewards are not fully transferred: the asset stays recognised in full.

Control depends on the resale price: Zeta keeps it if the buyer resells at a price below the carrying amount.

Zeta has kept control: the asset stays recognised to the extent of its continuing involvement.