Assets
Cash .... monetary item
Trade and other receivables .... items billed to customers
Purchased debt ledgers .... acquisition of unpaid debts
Liabilities
Trade and other payables .... items owed to suppliers
Derivative .... contract
Current tax liabilities .... liability of tax
Items of Equity
Issued capital .... Value of shares issued to shareholders
Reserves .... Shareholders equity
Retained earnings .... credit corps accumulated earnings not
distributed to shareholders
This is quite interesting. It's the first time I have seen purchased debt ledgers as an asset. It has to make you wonder though, what if the debt can't be recouped? Is there a provision in their financial statements for bad debts? And how much does it cost to chase the debt? The only way this could be profitable is if the debt acquisition cost less than the money that was recouped.
ReplyDeleteI liked the way you explained and listed them out. Very easy to understand. Great Job!!!
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