Ashish PatelAshish Patel asked 1 year ago
1 Answers
Best Answer
RaviRavi Staff answered 1 year ago

Co A sales goods to Co B for 1,00,000 on 1st Jan
Promises to Repurchase Same goods after 6 months for 1,05,000
this may appear sale and purchase 
but this is loan of 1,00,000 taken by A by giving goods as security and after 6 months repaid with interest of 5,000 and security taken back
above is example of
“complex transactions that are structured to misrepresent the financial position or financial performance of the entity”

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