EFRAG draft comment letter on Supplier Finance Arrangements

​​​​In its draft comment letter, EFRAG welcomes the exposure draft on Supplier Finance Arrangements and the IASB's efforts to enhance the transparency of supplier finance arrangements and their effects on an entity’s liabilities and cash flows.

At this stage, 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.

EFRAG anticipates that, at a later stage, further efforts are needed in terms of reporting for such arrangements and encourages the IASB to consider possible improvements related to supplier finance arrangements in other cross-related projects.

EFRAG's draft comment letter can be found here​.