IKON Receivables Funding, LLC
                                    FORM 10-K
                               September 30, 2002
<PAGE>

    As filed with the Securities and Exchange Commission on December 26, 2002

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K


(Mark One)

|X|      Annual  report  pursuant  to  Section  13 or  15(d)  of the  Securities
         Exchange Act of 1934

                 For the fiscal year ended September 30, 2002 or

|_|      Transition  report  pursuant  to Section 13 or 15(d) of the  Securities
         Exchange Act of 1934

               For the transition period from _______ to _______.

                        Commission file number 333-71362
                     ______________________________________

                          IKON RECEIVABLES FUNDING, LLC

             (Exact name of registrant as specified in its charter)


                  DELAWARE                                      52-2652209
       (State or other jurisdiction of                       (I.R.S. Employer
       incorporation or organization)                       Identification No.)

1738 Bass Road, P.O. Box 9115, Macon, Georgia                      31208
  (Address of principal executive offices)                       (Zip Code)


       Registrant's telephone number, including area code: (478) 471-2300

                     ______________________________________

        Securities registered pursuant to Section 12(b) of the Act: None

        Securities registered pursuant to Section 12(g) of the Act: None

        Indicate by check mark if disclosure of  delinquent  filers  pursuant to
Item 405 of Regulation S-K is not contained  herein,  and will not be contained,
to the best of the  registrant's  knowledge,  in definitive proxy or information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. [X]

        Indicate by check mark whether the  registrant is an  accelerated  filer
(as defined in Rule 12b-2 of the Act). Yes [_] No [X]

        Indicate by check mark whether the  registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes |X| No |_|


Registered debt outstanding as of December 26, 2002 was $552,505,654.

                      Documents incorporated by reference:

                                      None

The registrant meets the conditions set forth in General  Instruction  (I)(1)(a)
and (b) of Form 10-K and is therefore filing with the reduced  disclosure format
contemplated thereby.


<PAGE>

                                     INDEX*

                                                                        Page No.
                                     PART I

ITEM 1.  BUSINESS                                                             1

ITEM 2.  PROPERTIES                                                           1

ITEM 3.  LEGAL PROCEEDINGS                                                    1

                                     PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
              STOCKHOLDER MATTERS                                             1

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
              AND RESULTS OF OPERATIONS                                       2

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK           3

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                          3

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
              ACCOUNTING AND FINANCIAL DISCLOSURE                             3

                                    PART III

ITEM 14. CONTROLS AND PROCEDURES                                              3

                                     PART IV


ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
              FORM 8-K                                                        4


*All  amounts  contained  in this  annual  report on Form 10-K are in  thousands
unless otherwise noted.

<PAGE>

Forward-Looking Information

        This Report includes or incorporates by reference, information which may
constitute   forward-looking  statements  within  the  meaning  of  the  federal
securities laws. Although IKON Receivables Funding, LLC (the "Company") believes
the expectations contained in such forward-looking statements are reasonable, it
can  give  no  assurances  that  such  expectations  will  prove  correct.  Such
forward-looking   information  is  based  upon  management's  current  plans  or
expectations  and is subject to a number of risks and  uncertainties  that could
significantly affect current plans, anticipated actions and the future financial
condition and results of IKON Office  Solutions,  Inc. ("IKON") and IOS Capital,
LLC ("IOSC").  These risks and uncertainties,  which apply to the Company,  IOSC
and IKON, include, but are not limited to, risks and uncertainties  relating to:
factors which may affect the Company's  ability to recoup the full amount due on
the Leases  (such as lessee  defaults  or factors  impeding  recovery  efforts);
growth   opportunities   and   increasing   market   share,   productivity   and
infrastructure   initiatives;   earnings,   revenue,   cash  flow,  margin,  and
cost-savings  projections;  the effect of  competitive  pressures  on  equipment
sales; expected savings and lower costs from the productivity and infrastructure
initiatives;  developing and expanding strategic alliances and partnerships, the
impact of  e-commerce  and  e-procurement  initiatives;  the  implementation  of
e-IKON;  anticipated  growth  rates  in the  digital  and  color  equipment  and
outsourcing  industries;  the  effect of foreign  currency  exchange  risk;  the
reorganization of the Company's  business segments and the anticipated  benefits
of operational  synergies related thereto;  and the Company's ability to finance
its current operations and its growth initiatives. As a consequence of these and
other risks and  uncertainties,  current plans,  anticipated  actions and future
financial  condition and results may differ  materially  from those expressed in
any forward-looking statements made by or on behalf of the Company.

<PAGE>

                                     PART I

ITEM 1.   Business

        IKON  Receivables  Funding,  LLC (the  "Company")  is a special  purpose
Delaware limited liability company, all of the membership interests in which are
held by IKON Receivables-2, LLC ("Sole Member"), also a special purpose Delaware
limited liability  company.  All of the membership  interests in the Sole Member
are owned by IOS Capital,  LLC ("IOSC"),  a wholly-owned  finance  subsidiary of
IKON Office Solutions, Inc. ("IKON"), a publicly traded company with fiscal 2002
revenues of approximately  $4.8 billion.  IKON is a leading provider of products
and  services  that  help  businesses  manage  document  workflow  and  increase
efficiency.  IKON provides  customers  with total  business  solutions for every
office,  production and outsourcing need, including copiers and printers,  color
solutions,  distributed  printing,  facilities  management,  imaging  and  legal
document  solutions,  as well as network  design and  consulting  and e-business
development.  The Company was  organized  in the State of Delaware on October 9,
2001 and is managed by IKON Receivables Funding, Inc. (the "Manager").

        The  Company  was  organized  to  engage  exclusively  in the  following
business and  financial  activities:  to purchase or acquire  from IKON,  or any
subsidiary or affiliate of IKON, any right to payment,  whether  constituting an
account,  chattel paper,  instrument or general intangible,  and certain related
property (other than equipment) and rights (collectively,  "Lease Receivables"),
and hold, sell,  transfer,  pledge or otherwise  dispose of Lease Receivables or
interests therein;  to enter into any agreement related to any Lease Receivables
that provides for the administration, servicing and collection of amounts due on
such Lease Receivables and any interest rate hedging  arrangements in connection
therewith;  to distribute Lease  Receivables or proceeds from Lease  Receivables
and any other  income to its Sole  Member;  and to engage in any  lawful  act or
activity  and to  exercise  any power that is  incidental  and is  necessary  or
convenient to the foregoing and permitted under Delaware law.

        Neither  the Sole  Member  nor the  Manager  is  liable  for the  debts,
liabilities,  contracts or other  obligations of the Company solely by reason of
being the Sole Member or Manager of the Company.

        The Company's  organizational  documents require it to operate in such a
manner that it should not be consolidated  in the bankruptcy  estate of the Sole
Member,  IOSC, or IKON,  should any of these  entities  become subject to such a
proceeding. The Company is legally separate from each of the foregoing entities,
and  the  assets  of the  Company,  including,  without  limitation,  the  Lease
Receivables,  are not  available to the  creditors of the Sole Member,  IOSC, or
IKON.


ITEM 2.   Properties

        The  Registrant  does not utilize  any  facilities.  Actions  related to
servicing and maintaining the Registrant's assets are performed by IOSC.


ITEM 3.   Legal Proceedings

        None.


                                     PART II

ITEM 5.   Market for the  Registrant's  Common  Equity and  Related  Stockholder
          Matters

        There is currently no market for the Registrant's  equity securities nor
is it anticipated that such a market will develop.

                                       1

<PAGE>


ITEM 7.   Management's  Discussion  and  Analysis  of  Financial  Condition  and
          Results of Operations

        Pursuant  to General  Instruction  I(2)(a) of Form 10-K,  the  following
analysis of the  results of  operations  is  presented  in lieu of  Management's
Discussion and Analysis of Financial Condition and Results of Operations.

     On May 30, 2002, the Company  issued  $634,800 of  lease-backed  notes (the
"Notes")  pursuant to a shelf  registration  statement filed with the Securities
and Exchange Commission. The Notes are described below:

<TABLE>
<CAPTION>
                                                                     Principal
                                                                        Amount
                                                    Principal   Outstanding at                           Stated
                                         Issuance    Issuance    September 30,     Interest            Maturity
              Series         Notes           Date      Amount             2002         Rate                Date
              ------         -----           ----      ------             ----         ----                ----
<S>                     <C>             <C>        <C>               <C>             <C>          <C>
              2002-1     Class A-1       05/30/02   $ 171,000         $106,424       2.044%           June 2003
                         Class A-2       05/30/02      46,000           46,000        2.91%       February 2005
                         Class A-3       05/30/02     266,400          266,400        3.90%        October 2006
                         Class A-4       05/30/02     151,400          151,400        4.68%       November 2009
                                                    ---------         --------
                                            Total   $ 634,800         $570,224
                                                    =========         ========
</TABLE>

     The Notes were issued  pursuant to an indenture  ("Indenture")  between the
Company, IOSC, and the Indenture trustee. The Notes are collateralized by a pool
of office  equipment  leases or  contracts  and related  assets  (the  "Leases")
acquired or originated by IOSC (together with the equipment financing portion of
each  periodic  lease or rental  payment  due  under the  Leases on or after the
related indenture date) and all related casualty payments,  retainable deposits,
and  termination  payments.  Payments on the Notes are made from payments on the
Leases.  The  Notes  have  certain  credit  enhancement  features  available  to
noteholders,  including  reserve  accounts,  overcollateralization  accounts and
noncancelable  insurance policies from Ambac Assurance  Corporation with respect
to the Notes. On each payment date, funds available from the collection of lease
receivables  will be paid to the  noteholders  in the  order of  their  priority
class.

     IOSC services the Leases and may delegate its servicing responsibilities to
one or more  sub-servicers,  but such  delegation  does not relieve  IOSC of its
liabilities  with respect  thereto.  IOSC retains  possession  of the Leases and
related files, and receives a monthly service fee from the Company for servicing
the Leases.

     Restricted  cash on the  balance  sheet  represents  the cash that has been
collected on the leases that are pledged as collateral for  lease-backed  notes.
This cash must be  segregated  within two business days into a trust account and
the cash is used to pay the principal and interest on lease-backed notes as well
as any  associated  administrative  expenses.  The level of  restricted  cash is
impacted  from one  period  to the  next by the  volume  of  leases  pledged  as
collateral on the lease-backed notes and timing of collections on such leases.

     As  of  September  30,  2002,  the  Company  had  approximately  $1,865,200
available under the $2,500,000 shelf registration statement.

      Future  maturities of the Notes,  based on  contractual  maturities of the
Leases for each of the succeeding fiscal years, are as follows:

                          2002-1
                       Series Notes
                       ------------
      2003             $  191,375
      2004                178,300
      2005                132,840
      2006                 67,709
                       ------------
                       $  570,224
                       ============

                                       2

<PAGE>


     Interest income earned on the Leases offsets interest expense on the Notes,
amortization  of debt issuance  costs and the fees charged by IOSC for servicing
the Leases and providing  administrative services to the Company. For the fiscal
year ended  September 30, 2002,  income  generated  from the Leases was $29,779,
interest income on restricted cash was $110,  while interest expense during this
period was $8,323 and administrative  expenses were $1,365. Income taxes for the
fiscal year ended September 30, 2002 were $8,080.  The effective income tax rate
was 40%.

ITEM 7A.  Quantitative and Qualitative Disclosures About Market Risk

     The Company  incurs debt to fund the  origination  of leases for IKON.  The
interest  rates  charged  on the debt are  determined  based on  current  market
conditions  and all  outstanding  notes  were  fixed  at the  time of  issuance.
Therefore,  the Company has not entered into  interest  rate swap  agreements or
other market risk instruments for any purpose.

ITEM 8.   Financial Statements and Supplementary Data

        The financial  statements of the Company are submitted herewith on Pages
F-1 through F-8 of this report.

                                 Quarterly Data

        The following table shows  summarized  results for the fiscal year ended
September 30, 2002:

<TABLE>
<CAPTION>
                                             First         Second         Third         Fourth
                                           Quarter        Quarter       Quarter        Quarter         Total
                                    -------------------------------------------------------------------------
<S>                                            <C>            <C>      <C>            <C>           <C>
Lease finance income                           $ -            $ -      $ 11,862       $ 17,917      $ 29,779
Interest expense                                 -              -         2,259          6,064         8,323
Net income                                       -              -         5,638          6,483        12,121
</TABLE>



ITEM 9.   Changes  in and  Disagreements  with  Accountants  on  Accounting  and
          Financial Disclosure

        (No response to this item is required.)

                                    PART III

ITEM 14.   Controls and Procedures

        (No response to this item is required.)

                                       3

<PAGE>
                                     PART IV


ITEM 15.   Exhibits, Financial Statement Schedules, and Reports on Form 8-K

(a)     List of Financial Statements

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                  --------------
<S>                                                                                                   <C>
             Report of Independent Accountants                                                         F-1
             Balance Sheet at September 30, 2002                                                       F-2
             Statement of Income for the fiscal year ended September 30, 2002                          F-3
             Statement of Cash Flows for the fiscal year ended September 30,  2002                     F-4
             Statement of Changes in  Member's  Deficit for the fiscal year ended
               September 30, 2002                                                                      F-5
             Notes to Financial Statements                                                             F-6
</TABLE>

        Financial  Statements  and  Schedules  other than those listed above are
omitted because the required information is included in the financial statements
or the notes thereto or because they are inapplicable.

(b)  Exhibits

3.1    Certificate  of  Formation of IKON  Receivables  Funding,  LLC,  filed as
       Exhibit 3.1 to the Company's Registration Statement on Form S-3 (File No.
       333-71362), is incorporated herein by reference.

3.2    Limited  Liability Company  Agreement of IKON Receivables  Funding,  LLC,
       filed as Exhibit 3.2 to the Company's  Registration Statement on Form S-3
       (File No. 333-71362), is incorporated herein by reference.

10.1   Indenture,  dated as of May 1, 2002, among IKON Receivables Funding, LLC,
       BNY Midwest Trust Company, as Trustee, and IOS Capital, LLC, as Servicer,
       filed as Exhibit 4.1 to IKON  Receivables  Funding,  LLC's Form 8-K dated
       May 30, 2002 is incorporated herein by reference.

10.2   Assignment and Servicing  Agreement,  dated as of May 1, 2002, among IKON
       Receivables Funding,  LLC, IKON Receivables-2,  LLC, and IOS Capital, LLC
       as  Originator  and Servicer  filed as Exhibit  10.1 to IKON  Receivables
       Funding,  LLC's  Form 8-K dated May 30,  2002 is  incorporated  herein by
       reference.

10.3   Indemnification  Agreement,  dated May 30,  2002,  among  Banc of America
       Securities LLC,  Lehman Brothers Inc. and First Union  Securities LLC, as
       Underwriters,  and Ambac  Assurance  Corporation,  as  Insurer,  filed as
       Exhibit 10.2 to IKON  Receivables  Funding,  LLC's Form 8-K dated May 30,
       2002 is incorporated herein by reference.

10.4   Insurance and Indemnity Agreement, dated May 30, 2002, among IOS Capital,
       LLC, as Originator  and Servicer,  IKON  Receivables  Funding,  LLC, IKON
       Receivables-2,  LLC,  BNY  Midwest  Trust  Company  and  Ambac  Assurance
       Corporation,  as  Insurer,  filed  as  Exhibit  10.3 to IKON  Receivables
       Funding,  LLC's  Form 8-K dated May 30,  2002 is  incorporated  herein by
       reference.

12     Ratio of Earnings to Fixed Charges.

23     Consent of PricewaterhouseCoopers LLP.

99.1   Certifications Pursuant to 18 U.S.C. Section 1850, as Adopted Pursuant to
       Section 906 of the Sarbanes-Oxley Act of 2002.

(c)    Reports on Form 8-K

       None.

                                       4

<PAGE>

                        REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders
of IKON Office Solutions, Inc.

In our opinion,  the accompanying balance sheet as of September 30, 2002 and the
related statement of income, cash flows and member's deficit, present fairly, in
all material respects,  the financial position of IKON Receivables  Funding, LLC
at September 30, 2002,  and the results of its operations and its cash flows for
the year then ended in conformity with accounting  principles generally accepted
in  the  United  States  of  America.   These   financial   statements  are  the
responsibility of the Company's management;  our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these statements in accordance with auditing standards  generally accepted in
the United  States of America,  which require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and  disclosures in the financial  statements,  assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall  financial  statement  presentation.  We believe that our
audit provides a reasonable basis for our opinion.


/s/  PricewaterhouseCoopers LLP
Philadelphia, PA
December 2, 2002


                                      F-1

<PAGE>

                          IKON RECEIVABLES FUNDING, LLC

                                  BALANCE SHEET


                                                              September 30,
                                                                  2002
                                                               ---------

                                  Assets
Investments in leases:
     Financing lease receivables                               $ 741,005
     Less: Unearned income                                      (138,799)
                                                               ---------
                                                                 602,206

Cash                                                                   1
Restricted cash                                                   27,015
Accounts receivable                                               10,586
Prepaid expenses and other assets                                  1,895
                                                               ---------
               Total assets                                    $ 641,703
                                                               =========

                     Liabilities and Member's Deficit

Liabilities:
     Accrued expenses                                          $     978
     Lease-backed notes                                          570,224
     Deferred income taxes                                       240,882
                                                               ---------
          Total liabilities                                      812,084
                                                               ---------

Commitments and contingencies

Member's deficit:
     Contributed capital                                        (182,502)
     Retained earnings                                            12,121
                                                               ---------
          Total member's deficit                                (170,381)
                                                               ---------
               Total liabilities and member's deficit          $ 641,703
                                                               =========


                 See accompanying notes to financial statements.

                                      F-2

<PAGE>


                          IKON RECEIVABLES FUNDING, LLC

                               STATEMENT OF INCOME



                                          Fiscal Year Ended
                                          September 30, 2002
                                          ------------------
Revenues:
     Lease finance income                        $29,779
     Interest income on restricted cash              110
                                                 -------
                                                  29,889
                                                 -------

Expenses:
     Interest                                      8,323
     General and administrative                    1,365
                                                 -------
                                                   9,688
                                                 -------

Income before income taxes                        20,201

Provision for income taxes                         8,080
                                                 -------

Net income                                       $12,121
                                                 =======


                 See accompanying notes to financial statements.

                                      F-3

<PAGE>



                          IKON RECEIVABLES FUNDING, LLC

                             STATEMENT OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                         Fiscal Year Ended
                                                                         September 30, 2002
                                                                       ---------------------

<S>                                                                        <C>
Cash flows from operating activities
Net income                                                                 $  12,121
Adjustments to reconcile net income to net cash used in operating
  activities:
     Amortization                                                                279
     Provision for deferred taxes                                              8,080
     Changes in operating assets and liabilities:
         Increase in accounts receivable                                     (10,586)
         Increase in prepaid expenses and other assets                        (2,174)
         Increase in accrued expenses                                            978
                                                                           ---------
Net cash provided by operating activities                                      8,698
                                                                           ---------

Cash flows from investing activities
     Investments in leases:
         Collections, net of financing income                                 68,390
                                                                           ---------
Net cash provided by investing activities                                     68,390
                                                                           ---------

Cash flows from financing activities
     Proceeds from issuance of lease-backed notes                            634,800
     Payments on lease-backed notes                                          (64,576)
     Deposits to restricted cash                                             (27,015)
     Capital contribution from Sole Member                                         1
     Capital distributed to Sole Member                                     (620,297)
                                                                           ---------
Net cash used in financing activities                                        (77,087)
                                                                           ---------

Increase in cash                                                                   1
Cash at beginning of year                                                         --
                                                                           ---------
Cash at end of year                                                        $       1
                                                                           =========

Supplemental financing activities:
     Noncash capital contributions                                         $ 706,032
                                                                           =========
     Interest paid                                                         $   9,301
                                                                           =========
</TABLE>

                 See accompanying notes to financial statements.

                                      F-4

<PAGE>

                          IKON RECEIVABLES FUNDING, LLC

                    STATEMENT OF CHANGES IN MEMBER'S DEFICIT



<TABLE>
<CAPTION>
                                                     Contributed           Retained
                                                       Capital             Earnings             Total
                                                      ---------           ---------           ---------
<S>                                                   <C>                 <C>                 <C>
Net income                                                                $  12,121           $  12,121
Initial cash contribution by Sole Member              $       1                                       1
Equipment leases contributed by Sole Member,
     net of deferred taxes of $268,238                  402,358                                 402,358
Distributions to Sole Member                           (620,297)                               (620,297)
Reversal of income tax liability (Note 2)                35,436                                  35,436
                                                      ---------           ---------           ---------
Balance at September 30, 2002                         $(182,502)          $  12,121           $(170,381)
                                                      =========           =========           =========


                             See accompanying notes to financial statements.

                                                  F-5

</TABLE>

<PAGE>

                          IKON RECEIVABLES FUNDING, LLC

                          NOTES TO FINANCIAL STATEMENTS


1.   Organization

     IKON Receivables Funding, LLC (the "Company") is a special purpose Delaware
limited liability company,  all of the membership interests in which are held by
IKON Receivables-2, LLC ("Sole Member"), also a special purpose Delaware limited
liability company.  All of the membership interests in the Sole Member are owned
by IOS Capital,  LLC ("IOSC"),  a wholly-owned finance subsidiary of IKON Office
Solutions, Inc. ("IKON"), a publicly traded company with fiscal 2002 revenues of
approximately $4.8 billion.  IKON is a leading provider of products and services
that help businesses  manage  document  workflow and increase  efficiency.  IKON
provides  customers with total business  solutions for every office,  production
and  outsourcing  need,   including  copiers  and  printers,   color  solutions,
distributed  printing,   facilities  management,   imaging  and  legal  document
solutions,  as well as network design and consulting and e-business development.
The  Company  was  organized  in the State of Delaware on October 9, 2001 and is
managed by IKON Receivables Funding, Inc. (the "Manager").

     The Company was organized to engage  exclusively in the following  business
and financial activities: to purchase or acquire from IKON, or any subsidiary or
affiliate  of IKON,  any right to  payment,  whether  constituting  an  account,
chattel paper,  instrument or general  intangible,  and certain related property
(other than equipment) and rights (collectively, "Lease Receivables"), and hold,
sell,  transfer,  pledge or otherwise  dispose of Lease Receivables or interests
therein;  to enter  into any  agreement  related to any Lease  Receivables  that
provides for the administration, servicing and collection of amounts due on such
Lease  Receivables  and any interest  rate hedging  arrangements  in  connection
therewith;  to distribute Lease  Receivables or proceeds from Lease  Receivables
and any other  income to its Sole  Member;  and to engage in any  lawful  act or
activity  and to  exercise  any power that is  incidental  and is  necessary  or
convenient to the foregoing and permitted under Delaware law.

     Neither  the  Sole  Member  nor  the  Manager  is  liable  for  the  debts,
liabilities,  contracts or other  obligations of the Company solely by reason of
being the Sole Member or Manager of the Company.

     The  Company's  organizational  documents  require  it to operate in such a
manner that it should not be consolidated  in the bankruptcy  estate of the Sole
Member,  IOSC, or IKON,  should any of these  entities  become subject to such a
proceeding. The Company is legally separate from each of the foregoing entities,
and  the  assets  of the  Company,  including,  without  limitation,  the  Lease
Receivables,  are not  available to the  creditors of the Sole Member,  IOSC, or
IKON.

2.   Significant Accounting Policies

     Use of Estimates

     The  preparation  of financial  statements  in  conformity  with  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions that affect amounts reported in the financial  statements and notes.
Actual results could differ from those estimates and assumptions.

     Revenue Recognition

     Finance  income and rental  income are  recognized  over the related  lease
term. Revenue for other income is recognized in the period earned.

     Income Taxes

     The Company is classified as a single-member  limited liability corporation
and, as such, is  disregarded  as an entity  separate from its owners for income
tax  purposes.  Income  taxes are  reported in  accordance  with an informal tax
sharing  agreement with IKON.  The income tax provision  provided by the Company
pursuant to this agreement is on a separate return basis.

     The net investment in leases  represents the uncollected  contractual  cash
flow of the leases  that were  contributed  to the Company by the Sole Member in
the form of contributed  capital.  The tax basis and related income tax benefits
attributable  to the leases are  retained  by the Sole  Member.  Therefore,  the
contribution  of  the  leases  resulted  in a  deferred  tax  liability  and  is
attributed to the  differences  between the book and tax basis of the net leases
outstanding  as  calculated  by the Company  pursuant to  Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes." Because the Company
is not obligated to reimburse the Sole Member for

                                       F-6

<PAGE>

current  income  taxes,  all  reversals of the deferred tax liability to current
income  taxes  payable  and any current  income  taxes  payable  are  considered
additional capital contributions from the Sole Member.

     Restricted Cash

     Restricted  cash on the  balance  sheet  represents  the cash that has been
collected on the leases that are pledged as collateral for  lease-backed  notes.
This cash must be  segregated  within two business days into a trust account and
the cash is used to pay the principal and interest on lease-backed notes as well
as any  associated  administrative  expenses.  The level of  restricted  cash is
impacted  from one  period  to the  next by the  volume  of  leases  pledged  as
collateral on the lease-backed notes and timing of collections on such leases.

3.      Capital Contributions

        In fiscal 2002, the Sole Member made non-cash  capital  contributions to
the Company of  $706,032 of office  equipment  leases or  contracts  and related
assets (the  "Leases") and the reversal of income tax liability (see Notes 2 and
7).  The  Company  was formed on  October  9, 2001 and the Sole  Member  made an
initial capital contribution of $1 to the Company on March 5, 2002.

4.      Servicing Agreement

        The Company has a servicing  agreement  with IOSC pursuant to which IOSC
services the Leases and  provides  administrative  services to the Company.  The
servicing fee is calculated by multiplying 0.75% by the lesser of the discounted
present value of the Leases or the outstanding  amount of the lease-backed notes
(see Note 6).  The  servicing  fee  expense  was  $1,365  for the  period  ended
September 30, 2002.

5.      Investments in Leases

        At  September  30,  2002,   contractual   maturities  of  finance  lease
receivables are as follows:

<TABLE>
<CAPTION>
                                                                       Net                          Investment
                                                                      Leases        Residual        in Leases
                                                                -------------------------------------------------
<S>                                                              <C>             <C>            <C>
           2003                                                   $     213,221   $     23,234   $       236,455
           2004                                                         196,729         21,423           218,152
           2005                                                         145,809         15,878           161,687
           2006                                                          97,095         10,573           107,668
           2007                                                          15,303          1,666            16,969
           2008                                                              67              7                74
                                                                -------------------------------------------------
                                                                  $     668,224   $     72,781   $       741,005
           Less unearned interest                                      (125,169)       (13,630)         (138,799)
                                                                -------------------------------------------------
                                                                  $     543,055   $     59,151   $       602,206
                                                                =================================================
</TABLE>

     Residual  values  included in the  investment in leases are paid by IKON at
the  end of the  lease.  The  equipment  is then  transferred  to  IKON.


                                      F-7

<PAGE>


6.      Lease-Backed Notes

        On May 30, 2002, the Company issued $634,800 of lease-backed  notes (the
"Notes")  pursuant to a shelf  registration  statement filed with the Securities
and Exchange Commission. The Notes are described below:

<TABLE>
<CAPTION>
                                                                     Principal
                                                                        Amount
                                                    Principal   Outstanding at                           Stated
                                        Issuance     Issuance    September 30,     Interest            Maturity
              Series         Notes          Date       Amount             2002         Rate                Date
              ------         -----          ----       ------             ----         ----                ----
<S>                     <C>             <C>         <C>              <C>             <C>         <C>
              2002-1     Class A-1       05/30/02   $ 171,000         $106,424       2.044%           June 2003
                         Class A-2       05/30/02      46,000           46,000        2.91%       February 2005
                         Class A-3       05/30/02     266,400          266,400        3.90%        October 2006
                         Class A-4       05/30/02     151,400          151,400        4.68%       November 2009
                                                    ---------         --------
                                            Total   $ 634,800         $570,224
                                                    =========         ========
</TABLE>

     The Notes were issued  pursuant to an indenture  ("Indenture")  between the
Company, IOSC, and the Indenture trustee. The Notes are collateralized by a pool
of office  equipment  leases or  contracts  and related  assets  (the  "Leases")
acquired or originated by IOSC (together with the equipment financing portion of
each  periodic  lease or rental  payment  due  under the  Leases on or after the
related indenture date) and all related casualty payments,  retainable deposits,
and  termination  payments.  Payments on the Notes are made from payments on the
Leases.  The  Notes  have  certain  credit  enhancement  features  available  to
noteholders,  including  reserve  accounts,  overcollateralization  accounts and
noncancelable  insurance policies from Ambac Assurance  Corporation with respect
to the Notes. On each payment date, funds available from the collection of lease
receivables  will be paid to the  noteholders  in the  order of  their  priority
class.

     IOSC services the Leases and may delegate its servicing responsibilities to
one or more  sub-servicers,  but such  delegation  does not relieve  IOSC of its
liabilities  with respect  thereto.  IOSC retains  possession  of the Leases and
related files, and receives a monthly service fee from the Company for servicing
the Leases.

     As  of  September  30,  2002,  the  Company  had  approximately  $1,865,200
available under the $2,500,000 shelf registration statement.

      Future  maturities of the Notes,  based on  contractual  maturities of the
Leases for each of the succeeding fiscal years, are as follows:

                          2002-1
                       Series Notes
                       ------------
      2003             $  191,375
      2004                178,300
      2005                132,840
      2006                 67,709
                       ------------
                       $  570,224
                       ============


7.      Income Taxes


        The components of the effective income tax rate were as follows:

                                                            Fiscal Year Ended
                                                              September 30,
                                                                  2002
                                                            -----------------
      Taxes at federal statutory rate                             35.0%
      State taxes, net of federal benefit                          5.0
                                                                -------
      Effective income tax rate                                   40.0%
                                                                -------


                                      F-8

<PAGE>

                                   SIGNATURES

        Pursuant to the  requirements  of section 13 or 15(d) of the  Securities
Act of 1934,  the  registrant  has duly  caused this report on Form 10-K for the
Fiscal  Year  ended  September  30,  2002  to be  signed  on its  behalf  by the
undersigned, thereunto duly authorized.

IKON RECEIVABLES FUNDING, LLC
Date:   December 26, 2002
By:     IKON RECEIVABLES FUNDING, INC.,
        as Sole Member and Manager

By: /s/ Russell S. Slack
    --------------------------
        Name:  Russell  S. Slack
        Title: President

        Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,
this  report on Form 10-K has been  signed  below on  December  26,  2002 by the
following persons on behalf of the registrant and in the capacities indicated.


        Signatures                                            Title
        ----------                                            -----

  /s/ Russell S. Slack                            President, Director and
-----------------------------                     Principal Executive Officer
     Russell S. Slack

   /s/ Harry G. Kozee                             Vice President, Director and
-----------------------------                     Principal Financial Officer
   Harry G. Kozee

  /s/ Kathleen M. Burns                           Vice President, Director and
-----------------------------                     Treasurer
    Kathleen M. Burns

                                                  Director
-----------------------------
    Robert C. Campbell

                                                  Director
-----------------------------
     Robert W. Grier


<PAGE>


CERTIFICATIONS

I,  Russell  S.  Slack,  President  and  Principal  Executive  Officer  of  IKON
Receivables Funding, LLC, certify that:

         1. I have reviewed this annual report on Form 10-K,  and all reports on
         Form 8-K containing  distribution or servicing reports filed in respect
         of periods included in the year covered by this annual report,  of IKON
         Receivables Funding, LLC;

         2. Based on my knowledge,  the information in these reports, taken as a
         whole, does not contain any untrue statement of a material fact or omit
         to state a material  fact  necessary to make the  statements  made,  in
         light of the  circumstances  under which such statements were made, not
         misleading  as of the last day of the  period  covered  by this  annual
         report;

         3. Based on my  knowledge,  the  servicing  information  required to be
         provided to the trustee by the servicer under the pooling and servicing
         agreement is included in these reports;

         4. I am  responsible  for  reviewing  the  activities  performed by the
         servicer  under the pooling and servicing  agreement and based upon the
         review required under the pooling and servicing  agreement,  and except
         as disclosed in the report,  the servicer has fulfilled its obligations
         under the servicing agreement; and

         5. I have disclosed to the registrant's  certified  public  accountants
         all significant deficiencies relating to the servicer's compliance with
         the minimum  servicing  standards in accordance with a review conducted
         in compliance with the Uniform Single Attestation  Program for Mortgage
         Brokers or similar  standard as set forth in the pooling and  servicing
         agreement.


Date:    December 26, 2002



/s/ Russell S. Slack
Russell S. Slack
President and Principal Executive Officer

<PAGE>

CERTIFICATIONS

I, Harry G. Kozee, Vice President - Finance,  Principal  Financial Officer,  and
Principal Accounting Officer of IKON Receivables Funding, LLC, certify that:

         1. I have reviewed this annual report on Form 10-K,  and all reports on
         Form 8-K containing  distribution or servicing reports filed in respect
         of periods included in the year covered by this annual report,  of IKON
         Receivables, LLC;

         2. Based on my knowledge,  the information in these reports, taken as a
         whole, does not contain any untrue statement of a material fact or omit
         to state a material  fact  necessary to make the  statements  made,  in
         light of the  circumstances  under which such statements were made, not
         misleading  as of the last day of the  period  covered  by this  annual
         report;

         3. Based on my  knowledge,  the  servicing  information  required to be
         provided to the trustee by the servicer under the pooling and servicing
         agreement is included in these reports;

         4. I am  responsible  for  reviewing  the  activities  performed by the
         servicer  under the pooling and servicing  agreement and based upon the
         review required under the pooling and servicing  agreement,  and except
         as disclosed in the report,  the servicer has fulfilled its obligations
         under the servicing agreement; and

         5. I have disclosed to the registrant's  certified  public  accountants
         all significant deficiencies relating to the servicer's compliance with
         the minimum  servicing  standards in accordance with a review conducted
         in compliance with the Uniform Single Attestation  Program for Mortgage
         Brokers or similar  standard as set forth in the pooling and  servicing
         agreement.


Date: December 26, 2002



/s/ Harry G. Kozee
Harry G. Kozee
Vice President - Finance, Principal Financial Officer,
and Principal Accounting Officer