Draft Endorsement Criteria Assessment of Supplier Finance Arrangements

The UKEB has today published a Draft Endorsement Criteria Assessment (DECA) on Supplier Finance Arrangements.

On 25 May 2023 the IASB published Supplier Finance Arrangements: Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures (the Amendments). The Amendments complement the existing disclosure requirements in IFRS Accounting Standards that apply to supplier finance arrangements. They are aimed at providing users of financial statements with information that enables them to assess the effect of supplier finance arrangements on an entity’s liabilities and cash flows, as well as on the entity’s exposure to liquidity risk. The Amendments are effective for annual reporting periods beginning on or after 1 January 2024, with early application permitted.

The UKEB invites stakeholders’ views on the DECA conclusions regarding potential UK adoption of the Amendments.

The Invitation to Comment and Your Details document can be accessed here.

The DECA can be accessed here and is open for stakeholder comments until close of business on 18 October 2023.

Responses should be emailed to UKEndorsementBoard@endorsement-board.uk.

Visit our website for more information on the UKEB’s approach to this project.