Skip to main content

IFRS® Accounting Standards

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

Summary

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

  • Engaging Communities

    IASB Exposure Draft issued in November 2021

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

  • Deliberating feedback

    The IASB has deliberated comments on their Exposure Draft

  • Final pronouncement

    The IASB issued the final pronouncements in May 2023

    The AcSB completed its endorsement process in June 2023 and incorporated the amendments into Canadian GAAP with an effective date of January 1, 2024

Disclaimer

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.