Proposed amendments to IAS 7 and IFRS 7 on Supplier Finance Arrangements
At its February 2023 meeting, the IASB continued its redeliberations on the Supplier Finance Arrangements project, which, as readers may remember, is proposing additional disclosure requirements in the notes.
Keywords: Mazars, Thailand, IAS 7, IFRS 7, Supplier Finance Arrangements
12 April 2023
At this meeting, the IASB tentatively decided on the requirements for first-time application of the proposed amendments to IAS 7 and IFRS 7:
- the effective date of the amendments will be 1 January 2024 (with early application permitted), and not 1 January 2025 as originally planned;
- to balance out the earlier implementation, the following reliefs will be provided for the annual reporting period in which an entity first applies the amendments:
- entities will not be required to disclose comparative information;
- at the beginning of the annual reporting period, entities will not be required to disclose information on (i) the carrying amount of financial liabilities that form part of supplier finance arrangements for which the suppliers have already received payment from the finance providers; or (ii) the range of payment due dates for financial liabilities and trade payables, whether or not these are part of a supplier finance arrangement;
- entities will not be required to apply the amendments to any interim financial statements presented within that year.
Publication of the final amendments is scheduled for May 2023.
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