 FASB Regulations: No impediment to SCF Greater regulation is coming to supply chain finance, but the market will still need those prepared to speak out to prevent financial scandals, writes Rebecca Spong
The downfall of Greensill Capital last March dragged the niche financial product of supply chain finance on to front pages around the world – mixed up with stories of political intrigue and the owner Lex Greensill’s questionable connections to senior members of the UK government. This week, more than a year and a half later, Liberty Steel, a division of Indian-British steel giant GFG Alliance, finally announced that it had reached a debt restructuring deal with creditors of Greensill. With the Greensill affair rumbling on in the background, the US Financial Accounting Standards Board (FASB), issued new rules coming into force next month which call for greater transparency on how supplier finance programmes are being used. It will make it easier for those looking at company accounts to see the impact of programmes on working capital and cash flow. |