ASCG comment letter on IASB-ED/2021/10 Supplier Finance Arrangements

Today, the ASCG have submitted to the IASB a comment letter on the Exposure Draft ED/2021/10 Supplier Finance Arrangements.

Overall, we support the IASB’s effort on improving transparency and the idea of establishing additional disclosure requirements. Therefore, we generally agree with the scope of the ED, the proposed disclosure objective as well as with the specific disclosures.

However, accounting for supplier finance arrangements should be addressed more comprehensively. As there are also challenges around presentation requirements, which are not addressed by the current ED, we deem it worth considering a broader consideration and possibly a project on IAS 7.