I'm working to better understand both U.S. tax and GAAP accounting for revenue-based financing transactions. Below, I'll post the exchange I had with ChatGPT. I was impressed by what it understood (Bing's answer suggests it couldn't understand the question.) Still, ChatGPT ultimately got couldn't cogently explain the accounting rules.
Do you know how to account for the cash flows for both lender and borrower for both tax and GAAP purposes?
Certainly, I can provide you with an overview of the Generally Accepted Accounting Principles (GAAP) and tax accounting considerations for revenue-based financing transactions.