{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/50/#15-scope-and-scope-exceptions","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"405","topic_title":"Liabilities","subtopic":"405-50","subtopic_title":"Liabilities—Supplier Finance Programs","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Entities","paragraphs":[{"citation":"405-50-15-1","para":"15-1","html":"
The guidance in this Subtopic applies to all entities that use supplier finance programs in connection with the purchase of goods and services (buyers in a supplier finance program).
","snippet":"The guidance in this Subtopic applies to all entities that use supplier finance programs in connection with the purchase of goods and services (buyers in a supplier finance program).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c7c740dbe0f1d0d7d83db02807065a68ef56081d6ab75e1888d5ead448f27885","downloaded_from":"2026-09-10T00:15:27.496Z","last_downloaded_at":"2026-09-10T00:15:27.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479528","source_sha256":"b7b6e1d921e8402fee9135175cd497ac00de389a194196ca940845c7dd8e4fa8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11e8ca8e41d12f5002abdb9ef75a2c8c7cc3084f66c43a1d0d38622a58c26949","downloaded_from":"2026-09-10T00:15:27.496Z","last_downloaded_at":"2026-09-10T00:15:27.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479528","source_sha256":"b7b6e1d921e8402fee9135175cd497ac00de389a194196ca940845c7dd8e4fa8"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"405-50-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to obligations in connection with supplier finance programs. A supplier finance program is an arrangement that has all the following characteristics:
  1. a
    An entity enters into an agreement with a finance provider or an intermediary.
  2. b
    The entity confirms supplier invoices as valid to the finance provider or intermediary under the agreement described in (a).
  3. c
    The entity’s supplier has the option to request early payment from a party other than the entity for invoices that the entity has confirmed as valid.
","snippet":"The guidance in this Subtopic applies to obligations in connection with supplier finance programs. A supplier finance program is an arrangement that has all the following characteristics:\n(a) An entity enters into an agr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ae812d914491168ad5ebe9bd389d99ddaf08becc64170d73f85b6034ea308d6","downloaded_from":"2026-09-10T00:15:27.496Z","last_downloaded_at":"2026-09-10T00:15:27.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479528","source_sha256":"b7b6e1d921e8402fee9135175cd497ac00de389a194196ca940845c7dd8e4fa8"}},{"citation":"405-50-15-3","para":"15-3","html":"
Although not determinative, an indicator that an entity may have a supplier finance program is the commitment to pay a party other than the supplier for a confirmed invoice without offset, deduction, or any other defenses to payment.
","snippet":"Although not determinative, an indicator that an entity may have a supplier finance program is the commitment to pay a party other than the supplier for a confirmed invoice without offset, deduction, or any other defense…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e80d3026606ca1e916391314abd92a62185b9639d590a8fc8756a7e8baa4eab","downloaded_from":"2026-09-10T00:15:27.496Z","last_downloaded_at":"2026-09-10T00:15:27.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479528","source_sha256":"b7b6e1d921e8402fee9135175cd497ac00de389a194196ca940845c7dd8e4fa8"}},{"citation":"405-50-15-4","para":"15-4","html":"
In determining whether an entity has established a supplier finance program and, therefore, is subject to the disclosures required by this Subtopic, all available evidence shall be considered, including arrangements between the entity and its finance provider or intermediary and between the entity and its suppliers whose invoices the entity has confirmed as valid to the finance provider or intermediary.
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