Disclosure of Supplier Finance Programs Involving Trade Payables

Last updated on January 27, 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 *)



The objective of this project is to develop disclosure requirements that enhance transparency about the use of supplier finance programs.


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.
No explicit requirements currently exist in the Codification to disclose information about supplier finance programs. In some circumstances, the U.S. Securities and Exchange Commission (SEC) staff has encouraged companies to consider disclosing information about those programs under Regulation S-K, Rule 303, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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.

Read the press release on the proposed Accounting Standards Update.

Decisions Reached at Last Meeting (September 22, 2021):

The Board discussed user outreach, potential disclosures, and transition guidance. The Board made the following decisions:


The Board decided that the buyer should disclose a rollforward of the amount confirmed by the buyer that is outstanding at the end of the reporting period.

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 decided that the disclosures should be provided for each period in which a balance sheet is presented.

The Board decided to allow early adoption for financial statements that have not been issued or made available for issuance as of the issuance date of amendments in a final Accounting Standards Update.

Analysis of Costs and Benefits

The Board decided that:
  1. It has received sufficient information and analysis to make an informed decision on the perceived costs of the changes.
  2. Subject to feedback received through the comment letter process, the expected benefits would justify the expected costs of the amendments included in the proposed Update.
Next Steps

The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.

The Board decided on a 90-day comment period for the proposed Update.

Tentative Board Decisions Reached to Date (as of September 22, 2021):

A summary of decisions reached to date can be found here.

The Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

The following are links to the minutes for each meeting.  To view Board meetings and handouts from the past 90 days, click here.
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.

The Board will consider comment letter feedback on the proposed Accounting Standards Update.

Lucy Cheng
Project Manager

Julie Um
Project Manager

Tanya Paul
Post-Doctoral Fellow

Dylan Ehrnst
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.