This content was published prior to the merger of equals between BKD and DHG on June 1, 2022. See all FORsights for the most up-to-date articles, webinars, and videos.
New Disclosures Proposed for Supply Finance Arrangements
A supplier finance program allows a buyer to offer its suppliers the option to be paid by a third party in advance of an invoice due date, based on invoices the buyer has confirmed as valid. Currently, there are no explicit disclosure requirements in generally accepted accounting principles. This article provides details on a FASB proposal that would require the buyer in a supplier finance program to disclose qualitative and quantitative information about the program to allow an investor to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude.
