Heads Up — FASB proposes enhanced disclosures about supplier finance programs
This Heads Up discusses the FASB’s newly issued proposed Accounting Standards Update (ASU) aimed at enhancing transparency about an entity’s use of supplier finance programs. Although the SEC staff and credit rating agencies have called for enhanced disclosures about such programs, the FASB Accounting Standards Codification does not currently include any disclosure requirements that apply specifically to them. Under the proposal, an entity would be required to disclose information about a supplier finance program that is sufficient to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. Comments on the proposed ASU are due by March 21, 2022.
