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.
This Exposure Draft proposes to amend IAS 7 and IFRS 7 to require entities to make additional disclosures that will assist users of financial statements in determining the effects of supplier finance arrangements on the entity's liabilities and cash flows.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Standards for publicly accountable enterprises.