Answer
(1) The transferred asset has been isolated from the transferor (placed beyond reach of its creditors and transferor).
(2) The transferees have obtained the right to exchange and pledge either the beneficial interest or transferred assets in the transferred assets.
(3) The transferor does not retain effective control over the transferred assets through an agreement to repurchase or redeem them before their maturity.
Work Step by Step
For a transfer of receivables with recourse to recorgnized as a sale, all of the conditions above must be met.
