IASB issues amendments to IAS 7 and IFRS 7 on disclosure requirements for supplier finance arrangeme
IASB issues amendments to IAS 7 and IFRS 7 on disclosure requirements for supplier finance arrangeme
The International Accounting Standards Board (IASB) has issued amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements. (It is anticipated that these amendments will be issued by the External Reporting Board (XRB), with the same effective date, in due course.)
The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with earlier application permitted.
The amendments are intended to enable users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk.
The amendments require an entity to disclose the following for its supplier finance arrangements:
- the terms and conditions of the arrangements
- the carrying amounts and associated line items of financial liabilities in the statement of financial position that are part of a supplier finance arrangement, with breakup of the amounts for which the suppliers have already received payment from the finance providers
- ranges of payment due dates; and
- liquidity risk information.
The amendments also include explanation of characteristics of a supplier finance arrangements and provide transitional relief, mainly for disclosure of comparative information.
The amendments may be accessed here.
For more on the above, please contact your local BDO representative.