The International Accounting Standards Board (IASB) has proposed to amend IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The proposed disclosure-only amendments are intended to complement the requirements in IFRS accounting standards that apply to supplier finance arrangements.
The IASB has been informed that the information entities currently provide about supplier finance arrangements falls short of meeting investor information needs.
The proposed amendments would affect an entity that, as a buyer, enters into one or more supplier finance arrangements, as described in the proposals, under which the entity, or its suppliers, can access financing for amounts the entity owes its suppliers.
The IASB is proposing a disclosure objective and requirements that would require an entity to disclose information to enable users of financial statements to assess the effects of the entity’s supplier finance arrangements on its liabilities and cash flows. The IASB’s proposals also highlight the required disclosure of liquidity risk and risk management and of non-cash changes in financing liabilities arising from supplier finance arrangements.
Access the Exposure Draft below. The comment letter period was open until 28 March 2022.
