{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/50/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"405-50-55-1","para":"55-1","html":"
Based on the limited facts and hypothetical fact pattern described in paragraph 405-50-55-2, this Example illustrates how an entity might apply the guidance in paragraph 405-50-50-3(a) to disclose the key terms of a supplier finance program, including a description of the payment terms (which includes payment timing and basis for its determination) and the assets pledged as security or other forms of guarantees provided for the committed payment to the finance provider or intermediary. This Example is not intended to illustrate every aspect of the key terms of a program that should be disclosed by a buyer entity. Identifying the key terms of a supplier finance program is a matter of judgment, based upon the facts of the arrangement.
","snippet":"Based on the limited facts and hypothetical fact pattern described in paragraph 405-50-55-2, this Example illustrates how an entity might apply the guidance in paragraph 405-50-50-3(a) to disclose the key terms of a supp…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:94ba8d2cd70e1af27ff3b9e8888f24f48c43b5322224f421e5be8b1fefe7b078","downloaded_from":"2026-09-10T00:15:36.231Z","last_downloaded_at":"2026-09-10T00:15:36.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477128","source_sha256":"0b7ed804b731fb728ef09b4f42cee8abe73a62a52f2be987b31aae658375e96c"}},{"citation":"405-50-55-2","para":"55-2","html":"
Entity A enters into a supplier finance program with Bank B in which Entity A agrees to pay Bank B on the invoice maturity dates the stated amount of invoices that Entity A has confirmed on Bank B’s supplier finance platform. Entity A pays Bank B an annual subscription fee for the supplier finance platform and a service fee for related support. Entity A or Bank B may terminate the agreement upon at least 90 days’ notice. The agreement with Bank B does not require that Entity A provide assets pledged as security or other forms of guarantees for the supplier finance program. Bank B does not advise Entity A of the maximum size of the program. Bank B also enters into a separate arrangement with Entity A’s suppliers and provides them with the option to request early payment from Bank B for invoices confirmed by Entity A. Entity A does not determine the terms or conditions of the arrangement between Bank B and Entity A’s suppliers. Entity A does not participate in the transactions between its suppliers and Bank B. The supplier invoices that have been confirmed as valid under the program require payment in full within 90 days of the invoice date.
","snippet":"Entity A enters into a supplier finance program with Bank B in which Entity A agrees to pay Bank B on the invoice maturity dates the stated amount of invoices that Entity A has confirmed on Bank B’s supplier finance plat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f84c75659e8071cce24c7c901c46fc76d67c39f46de26a6813b086491176fc1","downloaded_from":"2026-09-10T00:15:36.231Z","last_downloaded_at":"2026-09-10T00:15:36.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477128","source_sha256":"0b7ed804b731fb728ef09b4f42cee8abe73a62a52f2be987b31aae658375e96c"}},{"citation":"405-50-55-3","para":"55-3","html":"
Entity A determined that it should disclose the following information on the key terms of its supplier finance program:
  • Under a supplier finance program, Entity A agrees to pay a bank the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices, an annual subscription fee for the supplier finance platform, and service fees for related support. Entity A or the bank may terminate the agreement upon at least 90 days’ notice. The supplier invoices that have been confirmed as valid under the program require payment in full within 90 days of the invoice date.
","snippet":"Entity A determined that it should disclose the following information on the key terms of its supplier finance program:\nUnder a supplier finance program, Entity A agrees to pay a bank the stated amount of confirmed invoi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bfdb1582a77838e26e45fbf3b0fd72c28bc5826c4734994755cdf718a40c1169","downloaded_from":"2026-09-10T00:15:36.231Z","last_downloaded_at":"2026-09-10T00:15:36.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477128","source_sha256":"0b7ed804b731fb728ef09b4f42cee8abe73a62a52f2be987b31aae658375e96c"}},{"citation":"405-50-55-4","para":"55-4","html":"
This Example provides an illustration of the guidance in paragraph 405-50-50-3(b)(2) based on the assumptions that Entity A provides one comparative balance sheet and that its supplier finance program is denominated in Entity A’s reporting currency.
","snippet":"This Example provides an illustration of the guidance in paragraph 405-50-50-3(b)(2) based on the assumptions that Entity A provides one comparative balance sheet and that its supplier finance program is denominated in E…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62b0fa53a2cd6e32d421ce0f4e850f99f6912460f0d7a8df4d005be618cbc1b5","downloaded_from":"2026-09-10T00:15:36.231Z","last_downloaded_at":"2026-09-10T00:15:36.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477128","source_sha256":"0b7ed804b731fb728ef09b4f42cee8abe73a62a52f2be987b31aae658375e96c"}},{"citation":"405-50-55-5","para":"55-5","html":"
The following illustrates the disclosures in a tabular format.
  • The rollforwards of Entity A’s outstanding obligations confirmed as valid under its supplier finance program for years ended December 31, 20X2, and 20X1, are as follows (in thousands):
  • 20X2 20X1 Confirmed obligations outstanding at the beginning of the year $ 733 $ 712 Invoices confirmed during the year \"2,435 \" \"2,278 \" Confirmed invoices paid during the year \"(2,315)\" \"(2,257)\" Confirmed obligations outstanding at the end of the year $ 853
","snippet":"The following illustrates the disclosures in a tabular format.\nThe rollforwards of Entity A’s outstanding obligations confirmed as valid under its supplier finance program for years ended December 31, 20X2, and 20X1, are…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4f34a5a0b5dd1208481e1c24399a2ad7d211b10ceabb2d5109bc7f3869f3219","downloaded_from":"2026-09-10T00:15:36.231Z","last_downloaded_at":"2026-09-10T00:15:36.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477128","source_sha256":"0b7ed804b731fb728ef09b4f42cee8abe73a62a52f2be987b31aae658375e96c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7cb92d708d06ddef1a164a1e8ff9eb58f18a9ee3edb1293c47a1b253a518ceeb","downloaded_from":"2026-09-10T00:15:36.231Z","last_downloaded_at":"2026-09-10T00:15:36.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477128","source_sha256":"0b7ed804b731fb728ef09b4f42cee8abe73a62a52f2be987b31aae658375e96c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:531807bbdcccacf3234784d690774c988633768d7a36e41ffce89f639ae0c486","downloaded_from":"2026-09-10T00:15:36.231Z","last_downloaded_at":"2026-09-10T00:15:36.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477128","source_sha256":"0b7ed804b731fb728ef09b4f42cee8abe73a62a52f2be987b31aae658375e96c"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:531807bbdcccacf3234784d690774c988633768d7a36e41ffce89f639ae0c486","downloaded_from":"2026-09-10T00:15:36.231Z","last_downloaded_at":"2026-09-10T00:15:36.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477128","source_sha256":"0b7ed804b731fb728ef09b4f42cee8abe73a62a52f2be987b31aae658375e96c"}}