
November 17, 2022
FASB Has Issued New Disclosure Rules for Supply Chain Finance. What Do They Mean for Corporates?
The FASB’s disclosure rules will bring transparency to SCF programs but don’t require reclassification of trade payables. The world of supply chain finance (SCF) is facing a major change. Starting in 2023, corporations that extend payment terms with their suppliers and set up SCF programs so those vendors can be paid early by a bank or other third-party finance provider will have to disclose the terms and size of the SCF programs in financial statement footnotes. “It’s one of the…