FASB Issues Proposed ASU on Supplier Finance Programs

The FASB has issued a proposed Accounting Standards Update (ASU), Disclosure of Supplier Finance Program Obligations. The proposal would enhance disclosures about supplier finance programs by requiring entities to disclose information 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. For more information, see the press release on the FASB’s Web site.