UpBeat Inc. ( Case Study ) Example | Topics and Well Written Essays - 1000 words

UpBeat Inc. ( ) - Case Study usageAccording to the provision 1, banking concern needs to take permission from Upbeat Inc to grapple its receivables in slick of default also which is not the right accounting practice. It is totally against the principal of US GAAP. The bank has affluent statutory authorities to transfer different receivables of Upbeat Inc in case of political partys deadbeat situation. Once the company announced its incapability to repay bank loans then the bank can sell all receivables without any prerequisite permission. According to accounting principal this is considered as breach of trust or failure of agreement between two parties. Under this situation banks money is thither with the company and the company is not returning it unreasonably (Sherman, 2011). This situation gives full authority to the bank to sell all receivables of the company without any permission. According to ASC, the bank needs to monitor the financial conditions of borrowing Upbeat. I t has to bring out whether the company is trying to pay certify its money or not. Here in this case the company is withholding banks money unreasonably. So, there is no need to take any antecedent permission to sell or pledge their receivables. But here in this provision opposite affair has taken place. In the designing of this provision all the required standards of ASC has not been followed. This provision is not supporting(a) various accounting standards. So, all the above arguments are stating that provision 1 of transfer agreement does close out sales accounting.Here in this case, Transfer Provision 2 will not preclude sales accounting. According to this provision of transfer agreement Upbeat can repurchase their all receivables in approaching at a fixed price. According to GAAP of USA, Upbeat can come to an agreement with the bank where both parties will agree upon a fixed price against which the company will get back its receivables from the bank. It is a very suitable principal for Upbeat Inc. Due to this