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IFRS® Accounting Standards

Supplier Finance Arrangements – Proposed Amendments to IAS 7 and IFRS 7


The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures.

The proposed amendments address feedback on the IFRS Interpretations Committee Agenda Decision Supply Chain Financing Arrangements—Reverse Factoring that it did not require entities to disclose sufficient information necessary for users of financial statements to understand the effects of supplier finance arrangements on an entity’s liabilities and cash flows, as well as on its liquidity risk and risk management.

Staff Contact(s)

Katherine Knowlton, CPA, CA Associate Director, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to June 2021

  • Approving project

    The IASB approved the project in July 2021

  • Consulting stakeholders

    IASB Exposure Draft issued in November 2021

    AcSB Exposure Draft, which corresponds to the IASB Exposure Draft, issued in December 2021

  • Deliberating feedback
  • Final pronouncement


June 8, 2023

International Activity, Article

Update – The International Accounting Standards Board (IASB) issues new disclosure requirements for supplier finance arrangements

The IASB issued new disclosure requirements to enhance the transparency of supplier finance arrangements. Read our article to learn about the amendments and the types of transactions that are supplier finance arrangements.

December 14, 2021

News, Document for Comment

AcSB Exposure Draft – Supplier Finance Arrangements – Proposed Amendments to IAS 7 and IFRS 7

The AcSB issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. The AcSB will not be submitting a response letter to the IASB. However, this decision will be reviewed throughout the comment period and reconsidered based on stakeholder feedback. As a result, stakeholders are encouraged to reply to the AcSB prior to February 28, 2022, to support our ongoing discussions.

December 3, 2021

International Activity

IASB Exposure Draft – Supplier Finance Arrangements

The IASB has issued an Exposure Draft to amend IAS 7 and IFRS 7. The proposed amendments include new disclosure requirements aimed at enabling users of financial statements to assess the effects of the entity’s supplier finance arrangements on its liabilities and cash flows. Canadian stakeholders are encouraged to submit their comments to the IASB by March 28, 2022.

Meeting & event summaries

July 13, 2023

AcSB Decision Summary – June 21-22, 2023

The AcSB completed its final balloting process for the final amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures, which improve the information an entity provides about its supplier finance arrangements. These amendments and the accompanying Basis for Conclusions will be available in the CPA Canada Handbook – Accounting in August 2023.


This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.