25. May 2023

IASB publish Amendments to IAS 7 and IFRS 7 (Supplier Finance Arrangements)

Today, the IASB have published Amendments to IAS 7 and IFRS 7. These amendments add to existing disclosure requirements about an entity’s supplier finance arrangements. This aims at improving transparency about the effects of those arrangements on the entity’s liabilities, cash flows, and exposure to liquidity risk. In particular, an entity shall disclose under IAS 7 and IFRS 7the following:

  • the terms and conditions of those financing arrangements;
  • carrying amounts as at the beginning and end of the reporting period as well as associated line items;
  • range of payment due dates for liabilities that are part of such arrangements, and for those that are not;
  • concentrations of risk, in particular with finance providers.

These amendments shall be applied for annual periods beginning on or after 1 January 2024. Those disclosures are not required as comparatives for preceding years, nor for any interim period within that first year.

These amendments are available from the IASB subject to charges only. (IASB press release)