IASB releases new disclosure requirements for supply chain finance

The International Accounting Standards Board (IASB) has issued its new disclosure requirements for supply chain finance programmes, following a similar move by its US counterpart, FASB, late last year.

The amendments are a modification of existing IFRS Accounting Standards and require a company to disclose the following information about their supply chain finance programmes:

• the terms and conditions
• the amount of the liabilities that are part of the arrangements, breaking out the amounts for which the suppliers have already received payment from the finance providers, and stating where the liabilities sit on the balance sheet;
• ranges of payment due dates
• liquidity risk information.

Andreas Barckow, Chair of the IASB, said the new rules would, "Make visible a company’s usage of supplier finance arrangements and allow investors to make better-informed investment decisions by demonstrating how that usage has affected the company’s operations."

The Working Capital Forum has arranged a webinar with EY and Taulia to help treasurers understand and report under the new rules. Registration is free of charge using the button below.

---

Register Now