Financial Statement Disclosure of Supply Chain and other Trade Payables Programs

Trade payables programs have in recent years increased greatly in popularity among both large and small companies. While originally the sole domain of the large global banks and firmly based on a fairly straightforward reverse factoring model, these programs are now offered by banks

There has been increasing discussion with respect to the accounting treatment of trade payable programs and whether the obligations of the entity that owes the receivable (the “company”) under these programs should continue to be treated as trade payables on their balance sheet or, instead, be reflected as
Continue Reading Accounting and Rating Agency Treatment of Supply Chain and other Trade Payables Programs

Supply chain finance products have a well-deserved reputation of being fairly low risk propositions.  The majority of facilities are uncommitted, exposures are typically short-term and many counterparties are highly rated and well capitalized.  However, even in this product segment, as the COVID-19 pandemic continues to spread and most developed economies face the real prospect of