ASU 2022-04 — Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations

Subtopic 405-50, Supplier Finance Programs—Disclosure of Supplier Finance Program Obligations, requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude.

The amendments in this Update require qualitative and quantitative disclosures about supplier finance programs and thereby allow financial statement users to better understand the effect of those programs on an entity’s working capital, liquidity, and cash flows.

This Accounting Standard Update applies to all entities that use supplier finance programs in connection with the purchase of goods and services.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2021-007—Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which has been deleted.

Issued: September 29, 2022