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This session discusses repurchase agreements (repos), which involve selling an asset with the promise to buy it back later at a higher price. For example, if an item is sold for $100, the seller agrees to repurchase it for $106. This transaction simulates borrowing money rather than a straightforward sale. The significance of repos lies in revenue recognition, as they impact how companies account for their assets and liabilities. It is crucial for understanding whether a business is involved in a repo agreement or completing a traditional sale. This highlights the importance of distinguishing between financial transactions for accurate financial reporting.