UKEB publishes its Draft Endorsement Criteria Assessment on amendments to IAS 7 and IFRS 7 regarding supplier finance arrangements
22 Jul, 2023
The UK Endorsement Board (UKEB) has published its Draft Endorsement Criteria Assessment (DECA) which assesses whether 'Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7), issued by the International Accounting Standards Board (IASB) in May 2023, meet the UK's statutory requirements for adoption of IFRS accounting standards as set out in Statutory Instrument 2019/685.
The amendments add disclosure requirements and ‘signposts’ within existing disclosure requirements, that would ask entities to provide qualitative and quantitative information about supplier finance arrangements.
The UKEB's draft assessment tentatively concludes that:
- the amendments meet the criteria of relevance, reliability, comparability and understandability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by SI 2019/685 (see Regulation 7(1)(c)); and
- application of the amendments is not contrary to the principle that an entity’s accounts must give a true and fair view as required by SI 2019/685 (see Regulation 7(1)(a)).
Additionally the UKEB tentatively concludes that the amendments are likely to be conducive to the long-term public good in the UK.
Comments on the draft Endorsement Criteria Assessment are requested by 18 October 2023.
For more information, see the Invitation to Comment and draft Endorsement Criteria Assessment on the UKEB's website.
