Domingues informs Casado of a final piece of information relevant to his evaluation. To increase liquidity, Bardem is considering borrowing €70M against accounts receivable. As an alternative to borrowing, they could securitize the receivables by creating a special purpose entity (SPE) over which they would exercise control. To do so, they would invest €5M in the SPE. The SPE would then borrow €70M, and would buy €75M in receivables from Bardem. Domingues comments that securitization using an SPE would impact Bardem’s reported financial condition in three ways. It would:
- reduce the cost of borrowing.
- increase the level of current assets.
- improve balance sheet ratios.
Q. If Bardem creates a special purpose entity rather than borrowing against its receivables, which of Domingues’ comments is most accurate? Comment:
- 1
- 2
- 3
Solution
A is correct. Bardem’s cost of borrowing through the SPE is likely to decrease, because the SPE is bankruptcy remote from Bardem, and the lenders will have a direct claim on the receivables, thus allowing the SPE to borrow at preferred rates.
B is incorrect because Bardem’s accounts receivable will decrease by €75M, while its cash will increase by €70M (€75M cash from the sale of receivables less €5M to set up the SPE). After consolidation, those changes are reversed and the consolidated balance sheet will be identical to the balance sheet under receivables borrowing.
C is incorrect because both IFRS and US GAAP will require the SPE to be consolidated into Bardem’s balance sheet. The result is that the consolidated balance sheet will be identical to the balance sheet under receivables borrowing, and there will be no change in the ratios.
我理解 SPE是通过发债筹集资金，然后用资金购买母公司的应收款，这样一旦合并（按要求也必须合并），资产应该多出了筹集的现金，应收款依然存在，负债多出了借款的金额，显然流动资产增加了现金，答案说2不对，我没看懂
