WSJ

Foreign Companies’ Supply Financing to Face Greater Disclosure Rules Next Year

An international accounting standards-setter has moved up by a year the timing for when companies would have to disclose details on their supply-chain financing, a move aimed at improving transparency after several high-profile blowups in recent years.

The International Accounting Standards Board, which sets standards required globally, tentatively agreed at a Feb. 20 meeting on a one-year acceleration for standards that aim to outline what companies disclose on their supply-chain finance programs. As of Jan. 1, 2024, instead of 2025, businesses subject to the standards will have to disclose details such as the size and certain terms of their supply-chain finance programs.

…Companies started using the tool more frequently after the 2008 financial crisis as they looked to preserve cash by extending payment terms with vendors. Forty-one companies in the S&P 500 disclosed using supply-chain finance programs in 2022 annual reports, up from 33 the previous year and 15 in 2020, according to data provider MyLogIQ. The figures don’t necessarily show the full picture, MyLogIQ said, as companies haven’t generally had to disclose details on their supply-chain financing programs.

That will change, however, as the Financial Accounting Standards Board last year approved a rule requiring U.S. companies to disclose the terms and the size of their supply-chain financing starting this year.

admin

Recent Posts

‘Mission First:’ Military Directors More Likely to Hold CEOs Accountable

Boards have been steadily reinforcing their ranks through the addition of more directors with military…

2 months ago

Boards Consider Politically Connected Directors Under New Administration

Governance Professionals Caution Against Knee-Jerk Reactions to Shifting Political Winds Meta Platforms added Dana White,…

2 months ago

Let It Snow: CEOs with Cozy Pay and Cold Returns

Where CEO pay climbed and performance sank last year Danaher and United Parcel Service were…

3 months ago

How Boards Can Craft a Next-Level AI Strategy for 2025

As artificial intelligence grows more accessible, boards may have no choice but to embrace it…

3 months ago

Director Details: Who’s at the Table in 2024

A look at the demographics and skills of S&P 500 directors. Corporate boards have greater…

3 months ago

Long-Tenured Independent Directors Lower Litigation, Activist Risks

Companies with independent directors who've served on the board for more than 15 years are…

3 months ago