FASB Discusses Conceptual Framework and Supplier Finance Program Obligations
July 22, 2022
At its July 20, 2022, meeting, the FASB discussed its projects on the following topics:
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Disclosure of supplier finance program obligations — The Board completed redeliberations related to its proposed Accounting Standards Update (ASU) Disclosure of Supplier Finance Program Obligations. Specifically, the Board tentatively decided that:
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“Information about the key terms of a supplier finance program” should be disclosed.
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The final ASU’s amendments should be applied by “all entities that use supplier finance programs in connection with the purchase of goods and services.”
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The final ASU’s amendments “should be applied retrospectively to all periods in which a balance sheet is presented, except for the amendment on rollforward information, which should be applied prospectively.”
The Board directed the staff to draft a final ASU for a vote by written ballot. -
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Conceptual framework: recognition and derecognition — The Board discussed whether to begin deliberating the “recognition and derecognition phase of [its] Conceptual Framework project” and decided that the comment period for the proposed Chapters 2 and 8 of the framework would be 90 days. Further, the Board addressed “substantive issues that were identified by staff related to recognition and derecognition concepts in FASB Concepts Statement No. 5, Recognition and Measurement in Financial Statements of Business Enterprises, as amended by Chapter 7, Presentation, of FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting.”