29 November 2021To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IASB EXPOSURE DRAFTED/2021/10 Supplier Finance Arrangements(Proposed amendments to IAS 7 and IFRS 7)
Comments to be received by 15 February 2022The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute ofCertified Public Accountants (Institute) is seeking comments on the IASB Exposure DraftED/2021/10 Supplier Finance Arrangements (Proposed amendments to IAS 7 and IFRS 7).The Exposure Draft is available on the Institute's website:
http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/exposure-drafts/.The International Accounting Standards Board (IASB) has proposed amendment todisclosure requirements in IAS 7 Statement of Cash Flows and IFRS 7 FinancialInstruments: Disclosures to enhance the transparency of supplier finance arrangementsand their effects on a company’s liabilities and cash flows.Supplier finance arrangements are often referred to as supply chain finance, payablesfinance or reverse factoring arrangements. The proposed amendments to the currentdisclosure requirements are designed to meet investors’ demands for more detailedinformation to help them analyse and understand the effects of such arrangements.Under the IASB’s proposals, a company would be required to disclose information thatenables investors to assess the effects of the company’s supplier finance arrangements onits liabilities and cash flows. These proposals would amend IAS 7 and IFRS 7 andcomplement an agenda decision (Supply Chain Financing Arrangements—ReverseFactoring) published by the IFRS Interpretations Committee in December 2020.The proposed amendments would affect a company that, as a buyer, enters into one ormore supplier finance arrangements, under which the company, or its suppliers, can accessfinancing for amounts the company owes its suppliers.The FRSC invites your comments on the proposal as set out in the Exposure Draft by 15February 2022 to allow your comments to be considered in developing its response to theIASB. Comments should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6776E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unlessotherwise requested by the respondent.
Invitation to Comment on IASB Exposure Draft ED/2021/10 Supplier Finance Arrangements (Proposed amendments to IAS 7 and IFRS 7)
下载原件29 November 2021To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IASB EXPOSURE DRAFTED/2021/10 Supplier Finance Arrangements(Proposed amendments to IAS 7 and IFRS 7)
Comments to be received by 15 February 2022The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute ofCertified Public Accountants (Institute) is seeking comments on the IASB Exposure DraftED/2021/10 Supplier Finance Arrangements (Proposed amendments to IAS 7 and IFRS 7).The Exposure Draft is available on the Institute's website:
http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/exposure-drafts/.The International Accounting Standards Board (IASB) has proposed amendment todisclosure requirements in IAS 7 Statement of Cash Flows and IFRS 7 FinancialInstruments: Disclosures to enhance the transparency of supplier finance arrangementsand their effects on a company’s liabilities and cash flows.Supplier finance arrangements are often referred to as supply chain finance, payablesfinance or reverse factoring arrangements. The proposed amendments to the currentdisclosure requirements are designed to meet investors’ demands for more detailedinformation to help them analyse and understand the effects of such arrangements.Under the IASB’s proposals, a company would be required to disclose information thatenables investors to assess the effects of the company’s supplier finance arrangements onits liabilities and cash flows. These proposals would amend IAS 7 and IFRS 7 andcomplement an agenda decision (Supply Chain Financing Arrangements—ReverseFactoring) published by the IFRS Interpretations Committee in December 2020.The proposed amendments would affect a company that, as a buyer, enters into one ormore supplier finance arrangements, under which the company, or its suppliers, can accessfinancing for amounts the company owes its suppliers.The FRSC invites your comments on the proposal as set out in the Exposure Draft by 15February 2022 to allow your comments to be considered in developing its response to theIASB. Comments should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6776E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unlessotherwise requested by the respondent.