Q1)You are spending the summer working for a local wholesale furniture company, Samson Furniture, Inc.

Q1)You are spending the summer working for a local wholesale furniture company, Samson Furniture, Inc..The com- pany is considering a proposal from a local financial institution, Old Reliant Financial, to factor Samsons receiva- bles. The company controller is unfamiliar with the prevailing authoritative guidance that deals with accounting for the transfer of financial assets and has asked you to do some research..The controller wants to make sure the arrangement with the financial institution is structured in such a way as to allow the factoring to be accounted for as a sale.Old Reliant has offered to factor all of the companys receivables on a without recourse basis. Old Reliant will remit to Samson 90% of the factored amount, collect the receivables from Samsons customers, and retain the remaining 10% until all of the receivables have been collected..When Old Reliant collects all of the receivables, it will remit to Samson the retained amount, less a 4% fee (4% of the total factored amount).Required:1. Explain the meaning of the term without recourse. 2. Access the relevant authoritative guidance on accounting for the transfer of financial assets using the websiteof the IFRS Foundation and the IASB.(http://www.ifrs.org/IFRSs/IFRS.htm). What conditions must be met for a transfer of receivables to be accounted for as a sale (or in accounting terms, derecognized)? What is the specific citation that Samson would rely on in applying that accounting treatment?3. Assuming that the conditions for treatment as a sale are met, prepare Samsons journal entry to record the factoring.of $400,000 of receivables. Assume that the fair value of the last 10% of Samsons receivables is equal to $25,000.4. An agreement that both entitles and obligates the transferor, Samson, to repurchase or redeem transferred assets from the transferee, Old Reliant, maintains the transferors effective control over those assets, how should the transfer be accounted for? Provide the specific citation relevant to this situation..