Need to know: FASB requires supplier finance program disclosures
By 
Maria L. Murphy2022-10-11T17:55:00
The Financial Accounting Standards Board (FASB) added new disclosure requirements for buyers of goods and services intended to increase transparency about how they use supplier finance programs.
FASB’s latest accounting standards update—ASU 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations—was issued Sept. 29.
“This standard is all about disclosure and does not provide new guidance on recognition and measurement,” said Mahesh Narayanasami, KPMG partner in the department of professional practice. “Although these programs have existed for a long time, FASB is addressing stakeholder feedback about the lack of transparency in buyers’ financial statements about these programs.”
Related articles
-
ArticleImpact of FASB measuring crypto assets at fair value
The Financial Accounting Standards Board tentatively decided to require crypto assets that are in scope to be measured at fair value. Experts discuss the evolving ramifications of the project.
-
ArticleAssessing the scope of FASB’s environmental credits project
The Financial Accounting Standards Board added a project to its technical agenda on environmental credits that will include recognition, measurement, accounting presentation, and disclosure.
-
ArticleFASB proposal sets disclosure requirements for supplier finance programs
The Financial Accounting Standards Board issued a proposed update to its liabilities standard setting disclosure expectations for supplier finance programs.
More from Accounting & Auditing
-
News BriefPhoto gallery: Compliance Week Third-Party Risk Management Summit
Nearly 200 attendees gathered at the Hotel Zaza in Austin, Texas for Compliance Week’s 2025 June 3-4. This year’s conference brought together compliance professionals from across the globe to discuss how rapidly shifting politics, policies and supply chain realities are affecting their jobs, and share best practices to respond.
-
PremiumExperts explain why IIA's new global audit rules will be 'central' to securing high-quality assurance
Compliance teams should expect more support from their organization’s internal audit functions. That is the clear message from the Institute of Internal Auditors, the global body of national affiliated internal audit institutes, which has just put into action its new Global Internal Audit Standards.
-
PremiumChinese regulators impose six-month ban, $62M fine on PwC’s China unit
Chinese authorities banned PwC’s Chinese unit from performing audits in the country for six months, labeling the subsidiary’s flawed audit work as complicit in the failure of giant property developer Evergrande.