The ASU intends to enhance transparency of supplier finance programs to understand the effect of those programs on an entity’s working capital, liquidity and cash flows.
|Annual and interim periods – Fiscal years beginning after
|December 15, 2022, except for the rollforward disclosure, which is effective for fiscal years beginning after December 15, 2023.
|Early adoption permitted?
During the first year of adoption, the information regarding the key terms of the programs and the balance sheet presentation are to be disclosed in each interim period even though this information will only be part of annual disclosures thereafter.
The amendments in this ASU are to be applied retrospectively to each period in which a balance sheet is presented, except for the amendment on rollforward information, which is to be applied prospectively.