The ASC has issued amendments to SFRS(I) 1-7 and SFRS(I) 7 (and the equivalent FRS 7 and FRS 107) on supplier finance arrangements, sometimes called reverse factoring.
What changes
- Companies must disclose the terms of their supplier finance arrangements.
- They must also disclose the amounts involved and how the arrangements affect their liabilities, cash flows and liquidity risk.
Effective date
Annual reporting periods beginning on or after 1 January 2024.