IAS 7 · Workpapers (Step 4 of 5)
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IAS 7 Statement of Cash Flows — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Supplier finance arrangements disclosure
- Prepared by
- AI-assisted draft
- Reviewed by
- Not reviewed — human review required
- Status
- Published
Objective of the workpaper
For each arrangement (one instance per arrangement), describe the contract terms, check whether it has the features of a supplier finance arrangement or is excluded, document the classification of the liabilities and of the payments to the finance providers (a judgement the standard does not settle), reconcile the liabilities that are part of the arrangement from opening to closing, then prepare the disclosure: terms, carrying amounts and line items, amounts already paid to suppliers, ranges of payment due dates and non-cash changes.
8 sections · 22 blocks · 2 calculations · 0 entries
- IAS 7 §44F
- IAS 7 §44G
- IAS 7 §44C
- IAS 7 §44H
- IAS 7 §44B
Work this workpaper as a mission
Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.
- A distributor's reverse factoring programme: qualification and disclosuresOpen the mission · Reverse factoring programme
- A distributor's reverse factoring programme: qualification and disclosuresOpen the mission · Purchasing cards
- A distributor's reverse factoring programme: qualification and disclosuresOpen the mission · Documentary letters of credit
- File for preparing the consolidated statement of cash flows of a retail groupOpen the mission
- File for preparing the consolidated statement of cash flows of a retail groupOpen the mission
5 instances from the cases: the calculations and entries below are run by the calculation engine.
- File and entity
- A distributor's reverse factoring programme: qualification and disclosures
- Case tasks documented here
- Which arrangements are supplier finance arrangements?
- How should the programme liabilities and the payments to the bank be classified?
- Reconcile the programme liabilities.
- Draft the note on supplier finance arrangements.
Inputs
InputsArrangement examined: parties, terms and conditions, security and guarantees
TextRequired
REVERSE_FACTORING_PROGRAMME_WITH_BANQUE_ORSANNE
Line items of the statement of financial position in which the liabilities are presented
Text
TRADE_AND_OTHER_PAYABLES
Ranges of payment due dates: liabilities in the arrangement and comparable trade payables outside it
Text
PROGRAMME_90_TO_120_DAYS_COMPARABLE_45_TO_60_DAYS
Rule: the range for comparable trade payables outside the arrangement is also disclosed (para. 44H).
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period
Number
1,850,000
Supplier invoices entered into the arrangement during the period
Number
9,600,000
Payments to the finance providers
Number
9,300,000
Non-cash changes (business combinations, exchange differences, other)
Number
20,000
Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Number
2,170,000
Of which suppliers already paid by the finance providers, at the beginning of the period
Number
1,400,000
Of which suppliers already paid by the finance providers, at the end of the period
Number
1,720,000
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Features of the arrangement
AnalysisIAS 7 §44FIAS 7 §44G
Points reviewed
ChecklistRequired
- One or more finance providers offer to pay the entity's suppliers
- The entity pays the provider on the same date or at a later date
- Extended payment terms for the entity or early payment for the suppliers
- Exclusion: credit enhancements only (guarantees, letters of credit used as guarantees)
- Exclusion: instruments used to settle directly (credit cards)
- Objective: effects on liabilities, cash flows and liquidity risk
Movement in the liabilities of the arrangement
CalculationsIAS 7 §44H
Closing carrying amount rebuilt
Calculation
2,170,000
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Difference: reported − rebuilt
Calculation
0
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Qualification and classification
JudgmentIAS 7 §44GIAS 7 §44C
Qualification of the arrangement
JudgmentRequired
Supplier finance arrangement
Supplier finance arrangement / Credit enhancement only: excluded / Instrument used to settle directly: excluded
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Classification of the payments to the finance providers in the statement
JudgmentRequired
Operating: liability presented in trade payables
Operating: liability presented in trade payables / Financing: liability arising from financing activities (financing liabilities reconciliation) / Not applicable (arrangement excluded)
Professional judgement: para. 44F to 44H settle neither the classification of the liabilities nor that of the payments to the providers; the classification used is justified against the definitions of the activities and made consistent with the presentation of the liability (Interpretations Committee agenda decision, December 2020).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIAS 7 §44HIAS 7 §44B
Items of the note
ChecklistRequired
- Terms and conditions (dissimilar arrangements disclosed separately)
- Opening and closing carrying amounts and line items
- Amounts already paid to suppliers by the finance providers
- Ranges of payment due dates, including comparable trade payables outside the arrangement
- Type and effect of non-cash changes
- If a financing liability: included in the financing liabilities reconciliation
Draft note on supplier finance arrangements
Text
Conclusion
ConclusionQualification, classification, movement in the liabilities and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status shown from the register)
References
Checks and financial statement impact
- Qualification documentedPass
- Classification documentedPass
- Movement in the liabilities agreedPass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- A distributor's reverse factoring programme: qualification and disclosures
- Case tasks documented here
- Which arrangements are supplier finance arrangements?
- How should the programme liabilities and the payments to the bank be classified?
- Reconcile the programme liabilities.
- Draft the note on supplier finance arrangements.
Inputs
InputsArrangement examined: parties, terms and conditions, security and guarantees
TextRequired
CORPORATE_PURCHASING_CARDS
Line items of the statement of financial position in which the liabilities are presented
Text
Ranges of payment due dates: liabilities in the arrangement and comparable trade payables outside it
Text
Rule: the range for comparable trade payables outside the arrangement is also disclosed (para. 44H).
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period
Number
Supplier invoices entered into the arrangement during the period
Number
Payments to the finance providers
Number
Non-cash changes (business combinations, exchange differences, other)
Number
Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Number
Of which suppliers already paid by the finance providers, at the beginning of the period
Number
Of which suppliers already paid by the finance providers, at the end of the period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Features of the arrangement
AnalysisIAS 7 §44FIAS 7 §44G
Points reviewed
ChecklistRequired
- One or more finance providers offer to pay the entity's suppliers
- The entity pays the provider on the same date or at a later date
- Extended payment terms for the entity or early payment for the suppliers
- Exclusion: credit enhancements only (guarantees, letters of credit used as guarantees)
- Exclusion: instruments used to settle directly (credit cards)
- Objective: effects on liabilities, cash flows and liquidity risk
Movement in the liabilities of the arrangement
CalculationsIAS 7 §44H
Closing carrying amount rebuilt
Calculation
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Difference: reported − rebuilt
Calculation
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Qualification and classification
JudgmentIAS 7 §44GIAS 7 §44C
Qualification of the arrangement
JudgmentRequired
Instrument used to settle directly: excluded
Supplier finance arrangement / Credit enhancement only: excluded / Instrument used to settle directly: excluded
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Classification of the payments to the finance providers in the statement
JudgmentRequired
Not applicable (arrangement excluded)
Operating: liability presented in trade payables / Financing: liability arising from financing activities (financing liabilities reconciliation) / Not applicable (arrangement excluded)
Professional judgement: para. 44F to 44H settle neither the classification of the liabilities nor that of the payments to the providers; the classification used is justified against the definitions of the activities and made consistent with the presentation of the liability (Interpretations Committee agenda decision, December 2020).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIAS 7 §44HIAS 7 §44B
Items of the note
ChecklistRequired
- Terms and conditions (dissimilar arrangements disclosed separately)
- Opening and closing carrying amounts and line items
- Amounts already paid to suppliers by the finance providers
- Ranges of payment due dates, including comparable trade payables outside the arrangement
- Type and effect of non-cash changes
- If a financing liability: included in the financing liabilities reconciliation
Draft note on supplier finance arrangements
Text
Conclusion
ConclusionQualification, classification, movement in the liabilities and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status shown from the register)
References
Checks and financial statement impact
- Qualification documentedPass
- Classification documentedPass
- Movement in the liabilities agreedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- A distributor's reverse factoring programme: qualification and disclosures
- Case tasks documented here
- Which arrangements are supplier finance arrangements?
- How should the programme liabilities and the payments to the bank be classified?
- Reconcile the programme liabilities.
- Draft the note on supplier finance arrangements.
Inputs
InputsArrangement examined: parties, terms and conditions, security and guarantees
TextRequired
DOCUMENTARY_LETTERS_OF_CREDIT_AS_GUARANTEE
Line items of the statement of financial position in which the liabilities are presented
Text
Ranges of payment due dates: liabilities in the arrangement and comparable trade payables outside it
Text
Rule: the range for comparable trade payables outside the arrangement is also disclosed (para. 44H).
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period
Number
Supplier invoices entered into the arrangement during the period
Number
Payments to the finance providers
Number
Non-cash changes (business combinations, exchange differences, other)
Number
Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Number
Of which suppliers already paid by the finance providers, at the beginning of the period
Number
Of which suppliers already paid by the finance providers, at the end of the period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Features of the arrangement
AnalysisIAS 7 §44FIAS 7 §44G
Points reviewed
ChecklistRequired
- One or more finance providers offer to pay the entity's suppliers
- The entity pays the provider on the same date or at a later date
- Extended payment terms for the entity or early payment for the suppliers
- Exclusion: credit enhancements only (guarantees, letters of credit used as guarantees)
- Exclusion: instruments used to settle directly (credit cards)
- Objective: effects on liabilities, cash flows and liquidity risk
Movement in the liabilities of the arrangement
CalculationsIAS 7 §44H
Closing carrying amount rebuilt
Calculation
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Difference: reported − rebuilt
Calculation
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Qualification and classification
JudgmentIAS 7 §44GIAS 7 §44C
Qualification of the arrangement
JudgmentRequired
Credit enhancement only: excluded
Supplier finance arrangement / Credit enhancement only: excluded / Instrument used to settle directly: excluded
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Classification of the payments to the finance providers in the statement
JudgmentRequired
Not applicable (arrangement excluded)
Operating: liability presented in trade payables / Financing: liability arising from financing activities (financing liabilities reconciliation) / Not applicable (arrangement excluded)
Professional judgement: para. 44F to 44H settle neither the classification of the liabilities nor that of the payments to the providers; the classification used is justified against the definitions of the activities and made consistent with the presentation of the liability (Interpretations Committee agenda decision, December 2020).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIAS 7 §44HIAS 7 §44B
Items of the note
ChecklistRequired
- Terms and conditions (dissimilar arrangements disclosed separately)
- Opening and closing carrying amounts and line items
- Amounts already paid to suppliers by the finance providers
- Ranges of payment due dates, including comparable trade payables outside the arrangement
- Type and effect of non-cash changes
- If a financing liability: included in the financing liabilities reconciliation
Draft note on supplier finance arrangements
Text
Conclusion
ConclusionQualification, classification, movement in the liabilities and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status shown from the register)
References
Checks and financial statement impact
- Qualification documentedPass
- Classification documentedPass
- Movement in the liabilities agreedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- File for preparing the consolidated statement of cash flows of a retail group
- Case tasks documented here
- Reconcile the liabilities of the supplier finance programme.
- Prepare the disclosures.
Inputs
InputsArrangement examined: parties, terms and conditions, security and guarantees
TextRequired
SUPPLY_CHAIN_FINANCE_PROGRAMME_WITH_A_BANK
Line items of the statement of financial position in which the liabilities are presented
Text
TRADE_AND_OTHER_PAYABLES
Ranges of payment due dates: liabilities in the arrangement and comparable trade payables outside it
Text
PROGRAMME_90_TO_120_DAYS_COMPARABLE_30_TO_60_DAYS
Rule: the range for comparable trade payables outside the arrangement is also disclosed (para. 44H).
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period
Number
800,000
Supplier invoices entered into the arrangement during the period
Number
4,800,000
Payments to the finance providers
Number
4,650,000
Non-cash changes (business combinations, exchange differences, other)
Number
Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Number
950,000
Of which suppliers already paid by the finance providers, at the beginning of the period
Number
600,000
Of which suppliers already paid by the finance providers, at the end of the period
Number
780,000
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Features of the arrangement
AnalysisIAS 7 §44FIAS 7 §44G
Points reviewed
ChecklistRequired
- One or more finance providers offer to pay the entity's suppliers
- The entity pays the provider on the same date or at a later date
- Extended payment terms for the entity or early payment for the suppliers
- Exclusion: credit enhancements only (guarantees, letters of credit used as guarantees)
- Exclusion: instruments used to settle directly (credit cards)
- Objective: effects on liabilities, cash flows and liquidity risk
Movement in the liabilities of the arrangement
CalculationsIAS 7 §44H
Closing carrying amount rebuilt
Calculation
950,000
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Difference: reported − rebuilt
Calculation
0
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Qualification and classification
JudgmentIAS 7 §44GIAS 7 §44C
Qualification of the arrangement
JudgmentRequired
Supplier finance arrangement
Supplier finance arrangement / Credit enhancement only: excluded / Instrument used to settle directly: excluded
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Classification of the payments to the finance providers in the statement
JudgmentRequired
Operating: liability presented in trade payables
Operating: liability presented in trade payables / Financing: liability arising from financing activities (financing liabilities reconciliation) / Not applicable (arrangement excluded)
Professional judgement: para. 44F to 44H settle neither the classification of the liabilities nor that of the payments to the providers; the classification used is justified against the definitions of the activities and made consistent with the presentation of the liability (Interpretations Committee agenda decision, December 2020).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIAS 7 §44HIAS 7 §44B
Items of the note
ChecklistRequired
- Terms and conditions (dissimilar arrangements disclosed separately)
- Opening and closing carrying amounts and line items
- Amounts already paid to suppliers by the finance providers
- Ranges of payment due dates, including comparable trade payables outside the arrangement
- Type and effect of non-cash changes
- If a financing liability: included in the financing liabilities reconciliation
Draft note on supplier finance arrangements
Text
Conclusion
ConclusionQualification, classification, movement in the liabilities and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status shown from the register)
References
Checks and financial statement impact
- Qualification documentedPass
- Classification documentedPass
- Movement in the liabilities agreedPass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- File for preparing the consolidated statement of cash flows of a retail group
- Case tasks documented here
- Reconcile the liabilities of the supplier finance programme.
- Prepare the disclosures.
Inputs
InputsArrangement examined: parties, terms and conditions, security and guarantees
TextRequired
SUPPLY_CHAIN_FINANCE_PROGRAMME_WITH_A_BANK
Line items of the statement of financial position in which the liabilities are presented
Text
TRADE_AND_OTHER_PAYABLES
Ranges of payment due dates: liabilities in the arrangement and comparable trade payables outside it
Text
PROGRAMME_90_TO_120_DAYS_COMPARABLE_30_TO_60_DAYS
Rule: the range for comparable trade payables outside the arrangement is also disclosed (para. 44H).
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period
Number
800,000
Supplier invoices entered into the arrangement during the period
Number
4,800,000
Payments to the finance providers
Number
4,650,000
Non-cash changes (business combinations, exchange differences, other)
Number
Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Number
950,000
Of which suppliers already paid by the finance providers, at the beginning of the period
Number
600,000
Of which suppliers already paid by the finance providers, at the end of the period
Number
780,000
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Features of the arrangement
AnalysisIAS 7 §44FIAS 7 §44G
Points reviewed
ChecklistRequired
- One or more finance providers offer to pay the entity's suppliers
- The entity pays the provider on the same date or at a later date
- Extended payment terms for the entity or early payment for the suppliers
- Exclusion: credit enhancements only (guarantees, letters of credit used as guarantees)
- Exclusion: instruments used to settle directly (credit cards)
- Objective: effects on liabilities, cash flows and liquidity risk
Movement in the liabilities of the arrangement
CalculationsIAS 7 §44H
Closing carrying amount rebuilt
Calculation
950,000
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Difference: reported − rebuilt
Calculation
0
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Qualification and classification
JudgmentIAS 7 §44GIAS 7 §44C
Qualification of the arrangement
JudgmentRequired
Supplier finance arrangement
Supplier finance arrangement / Credit enhancement only: excluded / Instrument used to settle directly: excluded
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Classification of the payments to the finance providers in the statement
JudgmentRequired
Operating: liability presented in trade payables
Operating: liability presented in trade payables / Financing: liability arising from financing activities (financing liabilities reconciliation) / Not applicable (arrangement excluded)
Professional judgement: para. 44F to 44H settle neither the classification of the liabilities nor that of the payments to the providers; the classification used is justified against the definitions of the activities and made consistent with the presentation of the liability (Interpretations Committee agenda decision, December 2020).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIAS 7 §44HIAS 7 §44B
Items of the note
ChecklistRequired
- Terms and conditions (dissimilar arrangements disclosed separately)
- Opening and closing carrying amounts and line items
- Amounts already paid to suppliers by the finance providers
- Ranges of payment due dates, including comparable trade payables outside the arrangement
- Type and effect of non-cash changes
- If a financing liability: included in the financing liabilities reconciliation
Draft note on supplier finance arrangements
Text
Conclusion
ConclusionQualification, classification, movement in the liabilities and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status shown from the register)
References
Checks and financial statement impact
- Qualification documentedPass
- Classification documentedPass
- Movement in the liabilities agreedPass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
Inputs
InputsArrangement examined: parties, terms and conditions, security and guarantees
TextRequired
Line items of the statement of financial position in which the liabilities are presented
Text
Ranges of payment due dates: liabilities in the arrangement and comparable trade payables outside it
Text
Rule: the range for comparable trade payables outside the arrangement is also disclosed (para. 44H).
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period
Number
Supplier invoices entered into the arrangement during the period
Number
Payments to the finance providers
Number
Non-cash changes (business combinations, exchange differences, other)
Number
Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Number
Of which suppliers already paid by the finance providers, at the beginning of the period
Number
Of which suppliers already paid by the finance providers, at the end of the period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Features of the arrangement
AnalysisIAS 7 §44FIAS 7 §44G
Points reviewed
ChecklistRequired
- One or more finance providers offer to pay the entity's suppliers
- The entity pays the provider on the same date or at a later date
- Extended payment terms for the entity or early payment for the suppliers
- Exclusion: credit enhancements only (guarantees, letters of credit used as guarantees)
- Exclusion: instruments used to settle directly (credit cards)
- Objective: effects on liabilities, cash flows and liquidity risk
Movement in the liabilities of the arrangement
CalculationsIAS 7 §44H
Closing carrying amount rebuilt
Calculation
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Difference: reported − rebuilt
Calculation
Carrying amount of the liabilities that are part of the arrangement at the beginning of the period ; Supplier invoices entered into the arrangement during the period ; − Payments to the finance providers ; Non-cash changes (business combinations, exchange differences, other) ; Reported carrying amount of the liabilities that are part of the arrangement at the end of the period
Qualification and classification
JudgmentIAS 7 §44GIAS 7 §44C
Qualification of the arrangement
JudgmentRequired
Supplier finance arrangement / Credit enhancement only: excluded / Instrument used to settle directly: excluded
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Classification of the payments to the finance providers in the statement
JudgmentRequired
Operating: liability presented in trade payables / Financing: liability arising from financing activities (financing liabilities reconciliation) / Not applicable (arrangement excluded)
Professional judgement: para. 44F to 44H settle neither the classification of the liabilities nor that of the payments to the providers; the classification used is justified against the definitions of the activities and made consistent with the presentation of the liability (Interpretations Committee agenda decision, December 2020).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIAS 7 §44HIAS 7 §44B
Items of the note
ChecklistRequired
- Terms and conditions (dissimilar arrangements disclosed separately)
- Opening and closing carrying amounts and line items
- Amounts already paid to suppliers by the finance providers
- Ranges of payment due dates, including comparable trade payables outside the arrangement
- Type and effect of non-cash changes
- If a financing liability: included in the financing liabilities reconciliation
Draft note on supplier finance arrangements
Text
Conclusion
ConclusionQualification, classification, movement in the liabilities and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status shown from the register)
References