The exposure draft adds disclosure requirements, and ‘signposts’ within existing disclosure requirements, that would ask entities to provide qualitative and quantitative information about supplier finance arrangements.

In its final comment letter, EFRAG welcomes the IASB's ED indicating that it will 'enhance the transparency of reporting for supplier finance arrangements and will increase conformity with existing disclosure requirements in IFRS Standards'.  However, EFRAG considers that the IASB's proposals do not completely address the wider issue of providing necessary transparency on entities' liquidity risk and how entities leverage their working capital to effectively obtain finance and encourages the IASB to consider possible improvements related to supplier finance arrangements in the future. 

EFRAG supports the narrow-scope of the project to develop specific disclosure requirements for supplier finance arrangements that provide relevant information to users of financial statements and makes further recommendations of how to strengthen the description of these arrangements, to expand the disclosure objective by also considering the effects of those arrangements on an entity’s liquidity risk and financial performance the and suggests improvements to the proposed disclosure requirements to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures to better address users information needs.

A press release and the final comment letter are available on the EFRAG website.