EFRAG draft comment letter on supplier finance arrangements

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

18 Jan 2022

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's Exposure Draft ED/2021/10 ‘Supplier Finance Arrangements’.

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 draft comment letter, EFRAG supports ‘the project which increases conformity with existing disclosure requirements in IFRS Standards. However, EFRAG considers that the IASB's proposals do not completely address the wider issue of presentation and classification of such arrangements in the primary financial statements, the necessary transparency on liquidity risk and working capital leverage’.

Comments on EFRAG's draft comment letter are requested by 9 March 2022. For more in­for­ma­tion, see the press release and the draft comment letter on the EFRAG’s website.

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