Accounting for Repurchase Agreements (Repos)

Repurchase agreements are transactions between two parties where they exchange financial security and cash. These agreements can be arranged in different ways. The transfer of financial security means both parties should consider the transfer of control with the transaction among other important considerations. The tax and accounting treatment for both parties depends largely on that. …

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Accounting for Consideration Received from Vendors – ASC 705-20

Vendors offer incentives and allowances to resellers in different forms. These incentives can be in the form of cash or non-cash allowances to their resellers. ASC 705-20 guides on the accounting treatment for the considerations received from the vendors. Whereas, ASC 606-10-32 guides on the accounting principles of the considerations payable to the customers. Let …

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4 Methods of Share Repurchase Arrangements – Explained

A share repurchase is a method where a company buys back its shares from its existing shareholders. Companies repurchase their shares to control the number of outstanding shares and hence key financial performance metrics. A company can use one of the top 4 methods of share repurchase arrangements discussed in detail below. Share Repurchase Arrangement …

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