AASB Exposure Draft ED 317 Supplier Finance Arrangements

Thursday, December 2, 2021

ED 317 proposes disclosure-only amendments to AASB 107 Statement of Cash Flows and AASB 7 Financial Instruments: Disclosures. The proposed amendments are intended to complement the existing requirements in AASB Standards that apply to supplier finance arrangements. The ED incorporates IASB ED/2021/10.

The proposed amendments would affect an entity that, as a buyer, enters into one or more supplier finance arrangements, as described in the proposals, under which the entity, or its suppliers, can access financing for amounts the entity owes its suppliers.

The ED proposes a disclosure objective and requirements that would require an entity to disclose information to enable users of financial statements to assess the effects of the entity’s supplier finance arrangements on its liabilities and cash flows. The proposals also highlight the required disclosure of liquidity risk and risk management and of non-cash changes in financing liabilities arising from supplier finance arrangements.

Please submit your comments to the AASB by 3 February 2022, via the AASB website or email.

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