Investors and analysts informed the Board that, based on their experience, entities provide little information in their financial statements about reverse factoring or supply chain finance arrangements, and asked for improved disclosures in this area. To meet investor information needs, the Board has undertaken this project to add disclosure requirements about supplier finance arrangements that build on the current requirements in IFRS Standards. The new requirements aim to enable investors to assess the effects of these arrangements on an entity’s liabilities and cash flows.
In this webinar, Zach Gast, IASB Member and Dennis Deysel, IASB Technical Staff will provide an overview of the following:
- The current requirements in IFRS Standards applicable to supplier finance arrangements and why investors asked for additional disclosures
- How the Board’s proposal addresses investor needs for more information about such arrangements
- How investors can share feedback on the proposal