Supplier Finance Arrangements - Proposed amendments to IAS 7 and IFRS 7

Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB) of IFRS Foundation. The IASB, before issuing the new/amendments to IFRS Standards, issues consultative documents [such as Discussion Paper (DP), Exposure Draft (ED) etc] seeking public comments from across the globe. The Accounting Standards Board (ASB) of ICAI with the aim to provide an opportunity to the various stakeholders in India to raise their concerns at the initial International Standard-setting stage itself, invites comments on the consultative documents issued by the IASB. It also helps the Indian stakeholders to be aware of the preparations required for implementation of Ind AS in line with adhering to global timelines. Recently, the IASB has issued the following Exposure Draft for public comments:   

  • Supplier Finance Arrangements - Proposed amendments to IAS 7 and IFRS 7  

The IFRS Interpretations Committee (IFRS IC) considered a question about the information an entity is required to provide in its financial statements about supply chain finance (reverse factoring) arrangements. The credit rating agency that submitted the question said, based on its experience, entities provide little information in their financial statements about those arrangements. In response to that question, in December 2020 the Committee published the Agenda Decision Supply Chain Financing Arrangements—Reverse Factoring to explain the applicable requirements in IFRS Standards. The feedback on the draft Agenda Decision suggested that the information an entity is required to provide  about this form of financing falls short of meeting user information needs. Users of financial statements want to understand the effects of these arrangements on an entity’s liabilities and cash flows, as well as on liquidity risk and risk management.  

The proposals in this Exposure Draft are intended to complement the requirements in IFRS Standards that apply to reverse factoring and similar arrangements. The proposed amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures would require entities to disclose additional information in the notes about those arrangements. 

How to comment:

Comments may be submitted through any of the following modes:  



Click on "Submit comment letter" below (Preferred method)                  



Comments can be sent to:  



Secretary, Accounting Standards Board,  

The Institute of Chartered Accountants of India,  

ICAI Bhawan, Post Box No. 7100,   

Indraprastha Marg, New Delhi 110 002  

Further clarifications may be sought by e-mail to

Comment letter deadline

The Exposure Draft is open for comment until 30th January, 2022

Due process documents
Supplier Finance Arrangements - Proposed amendments to IAS 7 and IFRS 7  [PDF]