Accounting Approach of Carillion in Relation to Reverse Factoring comes under more Scrutiny

As per a report released by Moody’s Investor Service, the collapse of Carillion has highlighted shortcomings with regards to reverse factoring accounting tool, which is a type of supply-chain finance.

According to a corporate analytics agency, reverse factoring is one of the most used tools for providing the entity with finance in relation to supply of products, all across the world. As there is no definite accounting requirement, therefore very few entities mak