Description
- What do you mean by Securitization? Explain (2.5 Marks)
ATypes of Securitization
Which was the first non-assets, backed Securitization deal in Saudi Arabia?
2-Pass a journal entries in the books of lease contract by creating lease receivable at its net investment in which is equal to the minimum lease payments discounted at the rate of interest implicit in the lease. (2.5 marks)
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Explanation & Answer
Attached.
Securitization Outline
A)What do you mean by securitization? Explain
Securitization is the process where an issuer or a company comes up with a suitable financial
plan whereby they seek to bring all their assets together to form a consolidated financial pool that
is issued to the investors
bWhich was the first non-assets, backed Securitization deal in Saudi Arabia?
The Tasheel program was the first non- assets securitization deal whereby SR166mn of its
receivables were securitized by Extra
Pass journal entries in the books of the lease contract by creating lease receivable at its net
investment in which is equal to the minimum lease payments discounted at the rate of interest
implicit in the lease.
The journal entry would read that the lease receivable would be on the debit side while the asset
account would be credited. In addition, during the first payment, the lessor shall keep a receipt of
cash, reduction in the lease as well as recognition of an income
College of Administrative and Financial Sciences
Assignment 3
Deadline: End of 12 W-(11-4-2020) @ 23:59
Course Name: Accounting of Financial Institutions Student’s Name:
Course Code: ACCT 405
Student’s ID Number:
Semester: 2
CRN: 20785
Academic Year: 2019-20-1440/1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained / 5
Level of Marks: H...