Defining Issues | December 2021

 

Insight

FASB proposes supplier finance obligations disclosures

Proposed amendments would require an entity to disclose information about supplier finance program obligations.

Mahesh Narayanasami

Mahesh Narayanasami

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-7355

The proposed ASU intends to resolve diversity in practice by  clarifying that contractual sale restrictions are not considered in measuring the fair value of an equity security.

Applicability

  • Proposed ASU
  • Entities that use supplier finance programs in connection with the purchase of goods and services

Relevant dates

  • December 20, 2021 – FASB issued proposed ASU
  • March 21, 2022 – Comments due

Report contents

  • Applicability
  • Fast facts, impacts, actions
  • Background
  • Proposed guidance  
  • Effective dates and transition 

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