Supplier finance arrangements: Financial reporting considerations

This report outlines the financial reporting considerations of supplier finance arrangements, including the new disclosure requirements.

In recent years, there has been calls for more transparency on how supplier finance arrangements affect an entity’s liquidity risk, cash flows and financial liabilities. In response, the Australian Accounting Standards Board (AASB) amended AASB 107 Statement of Cash Flows and AASB 7 Financial Instruments: Disclosures to require disclosures about supplier finance arrangements. These new disclosures are applicable for reporting periods beginning on or after 1 January 2024, with transition rel...

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Authors: Patricia Stebbens

Published Date: 16 April 2024