Factoring and False accounting: Difference between pages

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imported>Doug Williamson
(Add alternative name.)
 
imported>Doug Williamson
(Add quote - source - FW Legal Ltd - https://criminal-defence-solicitors.com/fraud-defence-solicitors/false-accounting/)
 
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The sale or transfer by a supplier of legal title to accounts receivable (invoices).
1. ''Law - criminal law - UK.''


The supplier sells or transfers title to the receivables to a third party known as a factor.
False accounting is a criminal offence of dishonestly falsifying accounts or related documents knowing or suspecting them to be false or misleading, for the purpose of personal gain or of causing loss to another.


The arrangement can be either with or without recourse.  
False accounting can also include destroying or hiding accounts or related documents.




Factoring is often a convenient - but relatively expensive - form of finance for weaker corporate credits.
:<span style="color:#4B0082">'''''If you are accused of false accounting'''''</span>


The supplier sells its invoices, at a discount, to the factor. The factor then becomes responsible for collecting the debt.  
:"These can be very complex cases, expert examination of the records is often required.  


A factoring agreement between the factor and a client sets out the terms on which a factoring arrangement is made.
:Often people are accused of this when in reality they are guilty of nothing more than bad book keeping...  




As noted above, factoring arrangements can be with or without recourse.  
:The prosecution have to show that you were dishonest.  


Recourse factoring allows the factor to recover from the supplier/borrower any losses caused by bad debts.
:It is therefore a defence to say that despite the actions you were not dishonest."


:''Forrest Williams Legal Ltd.''


Also known as Invoice factoring.
 
 
2.  ''Law - criminal law.''
 
Similar criminal offences in other legal jurisdictions.




== See also ==
== See also ==
* [[Accounting standards]]
* [[Audit]]
* [[Auditors’ report]]
* [[Book keeping]]
* [[Contract]]
* [[Criminal law]]
* [[Disclosure]]
* [[Factual misstatement]]
* [[Financial reporting]]
* [[Fraud]]
* [[Fraudulent misrepresentation]]
* [[Fraudulent trading]]
* [[Innocent misrepresentation]]
* [[Judgmental misstatement]]
* [[Jurisdiction]]
* [[Law]]
* [[Material]]
* [[Misrepresentation]]
* [[Misstatement]]
* [[Negligent misrepresentation]]
* [[Negligent misstatement]]
* [[Qualified audit report]]
* [[Unqualified audit report]]
* [[Window-dressing]]


* [[Factors]]
[[Category:Accounting,_tax_and_regulation]]
* [[Confidential factoring]]
[[Category:The_business_context]]
* [[Debt factoring]]
* [[Domestic factoring]]
* [[Export factoring]]
* [[FCI]]
* [[Forfaiting]]
* [[Import factoring]]
* [[Internal factoring]]
* [[International factoring]]
* [[Invoice discounting]]
* [[Recourse]]
* [[Reverse factoring]]
* [[Securitisation]]
* [[Whole turnover]]
 
[[Category:Corporate_finance]]

Revision as of 13:16, 3 March 2022

1. Law - criminal law - UK.

False accounting is a criminal offence of dishonestly falsifying accounts or related documents knowing or suspecting them to be false or misleading, for the purpose of personal gain or of causing loss to another.

False accounting can also include destroying or hiding accounts or related documents.


If you are accused of false accounting
"These can be very complex cases, expert examination of the records is often required.
Often people are accused of this when in reality they are guilty of nothing more than bad book keeping...


The prosecution have to show that you were dishonest.
It is therefore a defence to say that despite the actions you were not dishonest."
Forrest Williams Legal Ltd.


2. Law - criminal law.

Similar criminal offences in other legal jurisdictions.


See also

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