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IAS 7Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5

Version of this content

IAS 7 Statement of Cash Flows — wording before IFRS 18Applicable today

Applies to annual periods beginning before January 1, 2027.

Mission · workpaperWorkpaper · IAS 7L4 · Expert

Documents

Reverse factoring agreement with Banque Orsanne

Contract

Reverse factoring agreement with Banque Orsanne

Agreement signed by Fontrevel and Banque Orsanne: the bank offers approved suppliers to pay the invoices approved by Fontrevel, at 30 days; Fontrevel undertakes to pay the bank 120 days after the invoice date, instead of 60 days for purchases outside the programme; no security is given; the group's parent guarantees Fontrevel's commitments. The agreement describes the remuneration of the bank borne by Fontrevel as interest: 18,000 in 20X5.

Supplier finance arrangements disclosure: Reverse factoring programme

A distributor's reverse factoring programme: qualification and disclosures

5 documents8 sections to document
0 / 5 sections completed
Guided mode

Section 1 of 8

Objective

In progress
Section brief
What to document
The engagement, its scope and the working mode chosen.
Why
A workpaper answers one precise question: framing it avoids off-topic work.
How
Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
Expected result
You know which question the workpaper must settle, and for which reporting date.
Your role
Preparer of the IAS 7 workpaper
Level
Expert
Estimated time
≈ 45 min
Progress
0 / 4 steps done (review excluded)

Context

Fontrevel Distribution SA (fictitious entity) distributes household equipment. Since 20X3, its suppliers have been able to sell their invoices to Banque Orsanne under a programme set up by Fontrevel. The audit committee asks for a full note for the 20X5 financial statements.

Assignment

Supplier finance arrangements disclosure

Purpose 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.

Questions of the file covered by this workpaper

  • 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.

Documents in the file

Open the documents to pick out the relevant information.

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