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US Accounting Board Backs Quarterly Reporting of ‘Hidden Debt’

June 22, 2022, 8:10 PM

Big companies that use complex—and largely hidden—financing to stretch out their cash and delay payments to suppliers could have to disclose how much money is at stake on a quarterly basis.

US accounting rulemakers on Wednesday continued to refine a plan that would call on companies to spell out for the first time the details of these increasingly popular supply chain financing techniques.

  • Under the proposed rule changes, companies would have to reveal the existence and details of financing techniques they use that pad their cash flows but are largely hidden from investors.
  • In a key change from the proposal ...