Last updated on June 28, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.
(Sections updated on the date above are indicated with an asterisk *)
Objective:The objective of this project is to develop disclosure requirements that enhance transparency about the use of supplier finance programs.
Background:Many financial statement users, including analysts and ratings agencies, have advocated for increased disclosure of qualitative and quantitative information about about supplier finance program obligations. The Board also received an agenda request from the Big Four accounting firms on aspects of the accounting and disclosure for supplier finance programs.
Exposure Draft(s):On December 20, 2021, the Board issued a proposed Accounting Standards Update, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The due date for comment letters is March 21, 2022.
- Download the proposed Accounting Standards Update, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations
Decisions Reached at Last Meeting (June 22, 2022):
The Board discussed the scope, disclosures, and interim reporting. The Board made the following decisions:
The Board affirmed the proposed scope guidance described in paragraphs 405-50-50-2 through 50-4 of the proposed Update.
The Board decided not to create a specific interim disclosure requirement and instead to rely upon principles in Topic 270, Interim Reporting, including those contemplated by the Board in the Disclosure Framework: Disclosures—Interim Reporting project.
The Board affirmed the amendment in the proposed Update to require an entity disclose the balance sheet presentation and a rollforward of the amount of the obligation outstanding at the end of the reporting period.
The Board decided to require an entity to disclose the amount of the obligation outstanding at each interim reporting period.
The Board decided not to require an entity to disclose a rollforward of the amount of the obligation outstanding for each interim reporting period.
Amount Paid Early to Suppliers
The Board affirmed its decision not to require an entity to disclose the amount paid early by the finance provider that is outstanding at the end of the reporting period.
The Board affirmed the amendment in the proposed Update to allow a buyer entity that uses more than one supplier finance program to aggregate disclosures, so long as useful information is not obscured by the aggregation of programs that have substantially different characteristics.
Tentative Board Decisions Reached to Date (as of June 22, 2022):
A summary of decisions reached to date can be found here.
The following are links to the minutes for each meeting. To view Board meetings and handouts from the past 90 days, click here.
|June 22, 2022||Board Meeting—Board Meeting–The Board met to begin redeliberations on disclosures of supplier finance program obligations.
The Board directed the staff to identify and develop examples of key terms (such as payment terms) for the disclosure requirement on the key terms of a supplier finance program.
|September 22, 2021||Board Meeting—The Board concluded initial deliberations on potential disclosures and transition guidance.
The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.
|June 30, 2021||Board Meeting—The Board began initial deliberations and made decisions related to scope and disclosures required of the buyer party in the programs.
The Board directed the staff to perform limited outreach with users on one aspect of the disclosures.
|October 21, 2020||Board Meeting—The Board added the project to the technical agenda.|
Postgraduate Technical Assistant
Postgraduate Technical Assistant
The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.