A popular form of financing—which boosts the cash flows of large companies by letting them stretch out payments to suppliers—has largely been hidden from investors and analysts. Until now.
US accounting rulemakers on Thursday published rules that will next year compel companies to reveal in their financial statement footnotes that they use supply chain financing and how much of it is at stake every reporting period.
The requirements follow almost three years of requests from investors and the Big Four accounting firms, as well as increased scrutiny of the financing by Wall Street’s top regulator. The Securities and Exchange Commission ...
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