The Institute of Chartered Accountants of India (ICAI) has proposed amendments to IAS 7 and IFRS 7.
Accounting Standards Board
The Institute of Chartered Accountants of India
30th November, 2021
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.
The above mentioned Exposure Drafts are hosted on the website of the ICAI for public comments with last date as January 30, 2022, and can be accessed at the following link: https://resource.cdn.icai.org/68013asb54470.pdf
Comments may be submitted through any of the following modes:
- Electronically: Click on http://www.icai.org/comments/asb/ to submit comment online (Preferred method)
- Email: Comments can be sent to: commentsasb@icai.in
- Postal 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 asb@icai.in
Join EduTaxTuber Network for the Latest updates on Income Tax, GST, Company Law, Stock Market and other related subjects.
Also, read other articles @ EduTaxTuber
-
Notification No. 37/2021 Central Tax- Seeks to make amendments to the CGST Rules, 2017
-
Government to introduce a Bill to Regulate Crypto Currency: Private Cryptocurrency to be banned and RBI to issue new crypto
-
New AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, etc.
-
Important Income Tax Due Dates for November 2021
-
Important Income Tax Due Dates for October 2021
-
RBI to Impose Monetary penalty on Banks for Non-Availability of Cash in ATMs
-
How to Download ITR Acknowledgement from New e-filing Portal?
-
ICAI | Extension of the time period for admission in Foundation Course
-
What is e-RUPI? | The New Digital Payment
-
GST Annual Return & Audit (GSTR 9 & GSTR 9C) For FY 2020-21
-
CMA-Extension of time for submission of online Examination Application Form
-
FAQs – Filling of ITR forms for Assessment Year 2021-22
-
FAQs on Covid 19 Vaccination
-
How to Verify the PAN Details Online?
-
How to Download Covid 19 Vaccination Certificate?
-
Circular No. 2 of 2021- Clarification in respect of Residential Status
-
Case Study Digest at the Final level-ICAI
-
CBDT Issues Refunds to Taxpayers between 1.04.2020 to 28.02.2021
-
Post Office Saving Account | Now Maintaining Minimum Balance is Mandatory
-
Shortcut Key in Tally – Tally ERP & TallyPrime
-
Learn How to Create a Company in TallyPrime?
-
How to E-Verify ITR
-
How to Check Income Tax Refund Status -Online
-
How to download ITR form (Java/Excel)?
-
Goods and Service Tax-List of Central Tax Notifications 2020
-
Know All About TDS – Rates, Due Dates, Forms & Challans, etc.
-
What is Form 15G and 15H? ( How to avoid TDS on interest income)
-
Court Refuses Anticipatory Bail to CA Accused of Forgery and GST Evasion
-
Income Tax Advisory for Validation of Bank Account for Income Tax Refund
-
GSTN Advisory on MERA BILL MERA ADHIKAAR SCHEME
-
MCA Issued Circular for Condonation of delay in Filing Form-3, Form-4, and Form-11
-
Steps For e-Invoicing: A Step-by-Step Guide for e-invoice
-
Income Tax Notification No. 43/2023: CBDT Notifies New Form 10IEA
-
CA Foundation Result: 7th August 2023- Check Result @ ICAI
-
To Curb Black Money: CG in consultation with the Chief Justice of the High Court of Jharkhand designates special economic offense court
-
Sum – Excel Practice Online
-
Excel Practice Online

We are here to help for every updates related to everything…👍📙👍📗