IASB publish ED/2021/10 – Proposed amendments to IAS 7 and IFRS 7

Today, the IASB have published the Exposure Draft ED/2021/10, thereby proposing additional disclosure requirements under IAS 7 and IFRS 7.

This Exposure Draft addresses the presentation of Supplier Finance Arrangements, in particular Reverse Factoring Agreements which are the most common form of such arrangements. For those contracts, it appears unclear whether the respective obligations shall be presented as financial liabilities or as trade payables. Further, it appears unclear whether respective cashflows shall be presented in the cashflow statement as operating or financing cashflows.

Therefore, the IASB now propose additional disclosure requirements under IAS 7 and IFRS 7, without giving advice about appropriate presentation.

The Exposure Draft is available from the IASB (free of charge), with a comment deadline by 28 March 2022.

More information is available soon on the ASCG’s respective project website (in German only).