Recognition in the accounts of receivables taken over by assignment according to OMFP 1802

Receivables taken over by assignment are entered in the accounts at acquisition cost.

(accounting item 461 ‘Sundry debtors’ = 462 ‘Sundry creditors’).

The nominal value of the receivables taken over is shown off-balance-sheet (account 809 “Receivables taken over”).

In the case of the acquisition of a portfolio of claims, the acquisition cost is allocated to each claim acquired.

If the transferee recovers from the debtor taken over an amount greater than the cost of the receivable against it, the difference between the amount received and the acquisition cost is recorded in income (account 758 ‘Other operating income’/separate account) at the date of collection.

If the transferee assigns the receivable from the debtor taken over, it recognises in accounting at the date of assignment:

a) an expense (account 654 ‘Losses on receivables and sundry debtors’), if the acquisition cost of the the assigned receivable is higher than its assignment price; or

b) an income (account 758 ‘Other operating income’/separate account), if the transfer price of a gain or loss on the sale of the assigned receivable is higher than its acquisition cost.