Supply Chain Finance Disclosures Taking Shape for U.S. Companies

U.S. accounting rulemakers want companies to reveal more details about complex financing arrangements that allow them to extend payments to suppliers. But they still have to figure out what exactly they want them to disclose.

The Financial Accounting Standards Board doesn’t want to write requirements so broadly that companies capture information on the use of company credit cards to pay suppliers or the standard practice of selling accounts receivables to make money, a FASB project manager said Thursday.

“We’ve identified some characteristics to date but would like to make those a little more concrete,” FASB project manager James Starkey