{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/50/","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.","number":"405-50","topic":"405","title":"Liabilities—Supplier Finance Programs","area":"Liabilities","paragraphs":18,"summary":"ASC 405-50 is a disclosure-only subtopic requiring the buyer in a supplier finance program (also called reverse factoring, payables finance, or structured payables) to disclose qualitative and quantitative information about the program. A supplier finance program exists when the buyer agrees with a finance provider or intermediary, confirms supplier invoices as valid to that party, and the supplier can request early payment from a party other than the buyer (405-50-15-2). The subtopic does not address recognition, measurement, or balance sheet presentation of the obligation, or the accounting by other parties (405-50-10-2).","concepts":["supplier finance program","reverse factoring","confirmed invoice","finance provider or intermediary","rollforward disclosure","trade payables","interim disclosure","balance sheet presentation"],"categories":["Disclosure","Presentation","Financial statement presentation","Debt and equity"],"level":"intermediate","topic_title":"Liabilities","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-50-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
405-50-05-1AddedAccounting Standards Update No. 2022-0409/29/2022
405-50-10-1AddedAccounting Standards Update No. 2022-0409/29/2022
405-50-10-2AddedAccounting Standards Update No. 2022-0409/29/2022
405-50-15-1 through 15-4
AddedAccounting Standards Update No. 2022-0409/29/2022
405-50-50-1 through 50-4
AddedAccounting Standards Update No. 2022-0409/29/2022
405-50-55-1 through 55-5
AddedAccounting Standards Update No. 2022-0409/29/2022
405-50-65-1AddedAccounting Standards Update No. 2022-0409/29/2022
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n405-50-05-1 | Added | Accounting Standards Update No. 2022-04 | 09/29/2022 |\n405-50-10-1…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e75694c86a661991fafb4a6af40df2a565aa83749bcc04a7eaaddf111ea1a54","downloaded_from":"2026-09-10T00:15:18.657Z","last_downloaded_at":"2026-09-10T00:15:18.657Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479621","source_sha256":"cf454e33a9fba34218cafdfedede517abec69289e9db1cb76a78d2b0b56c7610"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fcc8d07e7b633bf115bce920b04447c69cacc438c6329e1b5c8e277a17e94468","downloaded_from":"2026-09-10T00:15:18.657Z","last_downloaded_at":"2026-09-10T00:15:18.657Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479621","source_sha256":"cf454e33a9fba34218cafdfedede517abec69289e9db1cb76a78d2b0b56c7610"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc05a60a85fb933f48887cfae91123ed99452ea50958fe145ea80f17651d74e4","downloaded_from":"2026-09-10T00:15:18.657Z","last_downloaded_at":"2026-09-10T00:15:18.657Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479621","source_sha256":"cf454e33a9fba34218cafdfedede517abec69289e9db1cb76a78d2b0b56c7610"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-50-05-1","para":"05-1","html":"
This Subtopic addresses the disclosures applicable for an entity that uses a supplier finance program in connection with the purchase of goods and services (the buyer in a supplier finance program). A supplier finance program also may be referred to as a reverse factoring, payables finance, or structured payables arrangement.
","snippet":"This Subtopic addresses the disclosures applicable for an entity that uses a supplier finance program in connection with the purchase of goods and services (the buyer in a supplier finance program). A supplier finance pr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3bee2a551e2be7c5a6505e9e9fdc970372e20cd64df2ad83159fe8306c758bd","downloaded_from":"2026-09-10T00:15:22.160Z","last_downloaded_at":"2026-09-10T00:15:22.160Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479591","source_sha256":"f722799239ac741f45424179e7a09e411465a7a2d9e70e2b1c8a40fa16bd60f4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eee33774dff0c24cc72b27ef738156b5d3adc66d717b12147284b465c93d9fad","downloaded_from":"2026-09-10T00:15:22.160Z","last_downloaded_at":"2026-09-10T00:15:22.160Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479591","source_sha256":"f722799239ac741f45424179e7a09e411465a7a2d9e70e2b1c8a40fa16bd60f4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f0ecafb167b61b31b391bb492e77987581ead01d353062a6aff9cff03c822ba","downloaded_from":"2026-09-10T00:15:22.160Z","last_downloaded_at":"2026-09-10T00:15:22.160Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479591","source_sha256":"f722799239ac741f45424179e7a09e411465a7a2d9e70e2b1c8a40fa16bd60f4"}},{"number":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-50-10-1","para":"10-1","html":"
The objective of this Subtopic is to establish disclosures that enhance the transparency of a supplier finance program used by an entity in connection with the purchase of goods and services (the buyer in a supplier finance program).
","snippet":"The objective of this Subtopic is to establish disclosures that enhance the transparency of a supplier finance program used by an entity in connection with the purchase of goods and services (the buyer in a supplier fina…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a459802c86131739f703de60214b2efe32b9cb4dd0cc30cdb1c57a56a9673905","downloaded_from":"2026-09-10T00:15:24.411Z","last_downloaded_at":"2026-09-10T00:15:24.411Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479560","source_sha256":"4b6d279b8ac31192466d008140c11bd0fbd4438fd0b25eadeb8151fe822d9fe5"}},{"citation":"405-50-10-2","para":"10-2","html":"
This Subtopic does not address either of the following:
  1. a
    A buyer’s recognition, measurement, or financial statement presentation of an obligation in connection with a supplier finance program
  2. b
    The accounting and disclosure for other parties involved in a supplier finance program.
","snippet":"This Subtopic does not address either of the following:\n(a) A buyer’s recognition, measurement, or financial statement presentation of an obligation in connection with a supplier finance program\n(b) The accounting and di…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:943a319230de66246bc74aedb5dc57b4b722ce16d34aab40e12a5ed484d95ced","downloaded_from":"2026-09-10T00:15:24.411Z","last_downloaded_at":"2026-09-10T00:15:24.411Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479560","source_sha256":"4b6d279b8ac31192466d008140c11bd0fbd4438fd0b25eadeb8151fe822d9fe5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f05e09a160d1ceeb453b71fc194e10f1df4ed32809f3d5630654bf44ead2c72","downloaded_from":"2026-09-10T00:15:24.411Z","last_downloaded_at":"2026-09-10T00:15:24.411Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479560","source_sha256":"4b6d279b8ac31192466d008140c11bd0fbd4438fd0b25eadeb8151fe822d9fe5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e1fb71b49b81f01dbf2092a58c7374942aabacdd8735850d2caa6ae04564531b","downloaded_from":"2026-09-10T00:15:24.411Z","last_downloaded_at":"2026-09-10T00:15:24.411Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479560","source_sha256":"4b6d279b8ac31192466d008140c11bd0fbd4438fd0b25eadeb8151fe822d9fe5"}},{"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.
","snippet":"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 betw…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:acde2bb918a820e2a988c677b10f430d3ef3f46a7314e8832c13f6110dc40be7","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":"sha256:2c45a3dc6e6c58ba14d65dba736a6eb52a0720d868a5575a81f496368f1906b5","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":"sha256:6ce4b7a63776818b7cdee8cd0484b7b22725b5a336a119ab03c27bca928dae4c","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"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-50-50-1","para":"50-1","html":"
The objective of the requirements in this Subtopic is for an entity to disclose sufficient information to enable users of financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude of the entity’s supplier finance programs. To achieve that objective, an entity shall disclose qualitative and quantitative information about its supplier finance programs.
","snippet":"The objective of the requirements in this Subtopic is for an entity to disclose sufficient information to enable users of financial statements to understand the nature, activity during the period, changes from period to …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4d63a3f6a24c0186e4409a83fbb9ed142aae4461cf4b308de31bf6c3e196fe9","downloaded_from":"2026-09-10T00:15:33.286Z","last_downloaded_at":"2026-09-10T00:15:33.286Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479468","source_sha256":"87b0873afc32ec3f9f5e07a1aca1f9cf1589d9531f56a92711caa1312c3363ab"}},{"citation":"405-50-50-2","para":"50-2","html":"
An entity shall consider the level of detail necessary to satisfy the disclosure objective. If an entity uses more than one supplier finance program, the entity may aggregate disclosures, but not to the extent that useful information is obscured by the aggregation of programs that have substantially different characteristics.
","snippet":"An entity shall consider the level of detail necessary to satisfy the disclosure objective. If an entity uses more than one supplier finance program, the entity may aggregate disclosures, but not to the extent that usefu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:331101834776d17022378510f8d08d534154e7988d9b25575c4912ce176c03d8","downloaded_from":"2026-09-10T00:15:33.286Z","last_downloaded_at":"2026-09-10T00:15:33.286Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479468","source_sha256":"87b0873afc32ec3f9f5e07a1aca1f9cf1589d9531f56a92711caa1312c3363ab"}},{"citation":"405-50-50-3","para":"50-3","html":"
In each annual reporting period, an entity shall disclose all the following information about its supplier finance programs:
  1. a
    The key terms of the program, including, but not limited to:
    1. 1
      A description of the payment terms, including payment timing and the basis for its determination
    2. 2
      Assets pledged as security or other forms of guarantees provided for the committed payment to the finance provider or intermediary.
    See paragraphs
    405-50-55-1 through 55-3
    for an illustrative example.
  2. b
    The amount of obligations outstanding at the end of the reporting period that the entity has confirmed as valid to the finance provider or intermediary under the program (that is, the amount of obligations confirmed under the program that remains unpaid by the entity) and the following information about those obligations:
    1. 1
      Where those obligations are presented in the balance sheet. If those obligations are presented in more than one balance sheet line item, then the entity shall disclose the amount outstanding at the end of the reporting period in each line item.
    2. 2
      A rollforward of those obligations showing, at a minimum, all the following:
      1. i
        The amount of those obligations outstanding at the beginning of the reporting period
      2. ii
        The amount of those obligations added to the program during the reporting period
      3. iii
        The amount of those obligations settled during the reporting period
      4. iv
        The amount of those obligations outstanding at the end of the reporting period.
","snippet":"In each annual reporting period, an entity shall disclose all the following information about its supplier finance programs:\n(a) The key terms of the program, including, but not limited to:\n(1) A description of the payme…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e7edcd551bb4f65aa05c9fcef4de41d451a9ba0fb0b04a0c20b09fb642e238a","downloaded_from":"2026-09-10T00:15:33.286Z","last_downloaded_at":"2026-09-10T00:15:33.286Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479468","source_sha256":"87b0873afc32ec3f9f5e07a1aca1f9cf1589d9531f56a92711caa1312c3363ab"}},{"citation":"405-50-50-4","para":"50-4","html":"
In each interim reporting period, an entity shall disclose the amount of obligations outstanding that the entity has confirmed as valid to the finance provider or intermediary under the supplier finance program at the end of the reporting period.
","snippet":"In each interim reporting period, an entity shall disclose the amount of obligations outstanding that the entity has confirmed as valid to the finance provider or intermediary under the supplier finance program at the en…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b8f19ff85cd6cfc2d86b86cfa7680210a7c227dc14dd2ce72b10d75ddb40e8a","downloaded_from":"2026-09-10T00:15:33.286Z","last_downloaded_at":"2026-09-10T00:15:33.286Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479468","source_sha256":"87b0873afc32ec3f9f5e07a1aca1f9cf1589d9531f56a92711caa1312c3363ab"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1165e6bf10cd1ac532f2636194707fc4985346b2c8ad5e9d7e3a3a54fb39e0d3","downloaded_from":"2026-09-10T00:15:33.286Z","last_downloaded_at":"2026-09-10T00:15:33.286Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479468","source_sha256":"87b0873afc32ec3f9f5e07a1aca1f9cf1589d9531f56a92711caa1312c3363ab"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5cd487b2ec05542f2b4678529cedb394a1515f8df9decf8e41411fb0fc24404f","downloaded_from":"2026-09-10T00:15:33.286Z","last_downloaded_at":"2026-09-10T00:15:33.286Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479468","source_sha256":"87b0873afc32ec3f9f5e07a1aca1f9cf1589d9531f56a92711caa1312c3363ab"}},{"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"}},{"number":"65","label":"65 Transition and Open Effective Date Information","anchor":"65-transition-and-open-effective-date-information","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-50-65-1","para":"65-1","html":"
Paragraph superseded on 07/02/2026 after the end of the transition period stated in Accounting Standards Update No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.
","snippet":"Paragraph superseded on 07/02/2026 after the end of the transition period stated in Accounting Standards Update No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93a8b45ca22108289a7439c1033513ee4e81657de5bc923ce4b53198d6406235","downloaded_from":"2026-09-10T00:15:38.064Z","last_downloaded_at":"2026-09-10T00:15:38.064Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477123","source_sha256":"bcbafa0d9afd4e9261f9dea0fabd973b8c2aa376929d9411d172858eb9e4dab4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:df8409f152ac978979a10efee3b4f3f03e58907e6dceb1fc8ff61f1bbeb87646","downloaded_from":"2026-09-10T00:15:38.064Z","last_downloaded_at":"2026-09-10T00:15:38.064Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477123","source_sha256":"bcbafa0d9afd4e9261f9dea0fabd973b8c2aa376929d9411d172858eb9e4dab4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b90753a0cb58c9448a222972cf68df9d21467918ded2c3ac16c1d0a887e9cc0c","downloaded_from":"2026-09-10T00:15:38.064Z","last_downloaded_at":"2026-09-10T00:15:38.064Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477123","source_sha256":"bcbafa0d9afd4e9261f9dea0fabd973b8c2aa376929d9411d172858eb9e4dab4"}}],"enrichment":{"summary":"ASC 405-50 is a disclosure-only subtopic requiring the buyer in a supplier finance program (also called reverse factoring, payables finance, or structured payables) to disclose qualitative and quantitative information about the program. A supplier finance program exists when the buyer agrees with a finance provider or intermediary, confirms supplier invoices as valid to that party, and the supplier can request early payment from a party other than the buyer (405-50-15-2). The subtopic does not address recognition, measurement, or balance sheet presentation of the obligation, or the accounting by other parties (405-50-10-2).","key_points":["Scope: applies to all buyers using arrangements with the three characteristics in 405-50-15-2 — an agreement with a finance provider/intermediary, buyer confirmation of supplier invoices as valid, and the supplier's option to request early payment from a party other than the buyer.","An indicator (not determinative) of a supplier finance program is a commitment to pay a party other than the supplier for a confirmed invoice without offset, deduction, or other defenses to payment (405-50-15-3); all available evidence, including buyer-supplier arrangements, must be considered (405-50-15-4).","The subtopic is disclosure-only: it does not address the buyer's recognition, measurement, or financial statement presentation of the obligation, nor accounting by other parties to the program (405-50-10-2).","Disclosure objective is to let users understand the nature, activity during the period, changes from period to period, and potential magnitude of the programs (405-50-50-1); multiple programs may be aggregated unless aggregation obscures useful information about programs with substantially different characteristics (405-50-50-2).","Annually, disclose key terms — payment terms including payment timing and the basis for its determination, and assets pledged as security or other forms of guarantees for the committed payment (405-50-50-3(a)).","Annually, disclose the amount of obligations confirmed as valid and unpaid at period-end, where they are presented in the balance sheet (by line item if more than one), and a rollforward showing beginning balance, additions, settlements, and ending balance (405-50-50-3(b)).","In each interim reporting period, disclose the amount of confirmed obligations outstanding at the end of the period (405-50-50-4)."],"categories":["Disclosure","Presentation","Financial statement presentation","Debt and equity"],"audience_level":"intermediate","student_note":"This is a transparency rule born of concerns that reverse factoring lets companies stretch payment terms while still classifying the obligation as a trade payable rather than debt; the common misunderstanding is thinking ASC 405-50 dictates that classification — it does not, it only requires the buyer to disclose where the obligation is presented and how it moved during the period.","related_topics":["470","860","230","270","405-40"],"key_concepts":["supplier finance program","reverse factoring","confirmed invoice","finance provider or intermediary","rollforward disclosure","trade payables","interim disclosure","balance sheet 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timestamps"}},{"number":"210-20","title":"Offsetting","topic_title":"Balance Sheet","score":0.7369,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e5ddbb87b43b35cf9cbe4237d7aa61eea32785fb69b12982c8e33318d96b676c","downloaded_from":"2026-09-09T22:59:04.667Z","last_downloaded_at":"2026-09-09T22:59:32.460Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"860-30","title":"Secured Borrowing and Collateral","topic_title":"Transfers and 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