CPEA Alert: ASU 2022-04

On September 29, 2022, the FASB issued Accounting Standards Update (ASU) 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. ASU 2022-04 requires new disclosures for supplier finance programs, which also may be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments in ASU 2022-04 require 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,