Date: 02 December 2021
The IASB has published an Exposure Draft (ED) on Supplier Finance Arrangements that proposes amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures.
The proposed amendments would affect an entity that, as a buyer, enters into one or more supplier finance arrangements, under which the entity, or its suppliers, can access financing for amounts the entity owes its suppliers.
The proposals aim to provide users of financial statements with the information that enables them to assess the effect of supplier finance arrangements on an entity’s liabilities and cash flows, as well as on its liquidity risk and risk management.
The IASB’s comment period closes on 28 March 2022.
If you have views on the proposed amendment and you would like to input into the UKEB’s comment letter to the IASB please contact us: UKEndorsementBoard@endorsement-board.uk.
The exposure draft ED/2021/10 Supplier Finance Arrangements (Proposed amendments to IAS 7 and IFRS 7) can be found here.