IASB publishes amendments to IAS 7 and IFRS 7

On 25 May 2023, the International Accounting Standards Board (IASB) published Supplier Finance Arrangements with amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures.

The amendments relate to disclosure requirements in connection with supplier financing arrangements - also known as supply chain financing, financing of trade payables or reverse factoring arrangements.

The new requirements supplement those already included in IFRS standards and include disclosures about:

• Terms and conditions of supplier financing arrangements.
• The amounts of the liabilities that are the subject of such agreements, for which part of them the suppliers have already received payments from the financiers and under which item these liabilities are shown in the balance sheet
• The ranges of due dates
• Information on liquidity risk

The amendments are effective for annual periods beginning on or after 1 January 2024. For entities applying EU-IFRS, this obligation only applies after the corresponding EU endorsement.

The press release is available on the IASB website at this link.