BC29 The IASB developed the two disclosure objectives in paragraph 44F of IAS 7 to meet particular information needs of users of financial statements, namely to provide users of financial statements with information to enable them:
(a) to assess how supplier finance arrangements affect an entity’s liabilities and cash flows; and
(b) to understand the effect of supplier finance arrangements on an entity’s exposure to liquidity risk and how the entity might be affected if the arrangements were no longer available to it.
BC30 Some respondents to the IASB’s November 2021 Exposure Draft Supplier Finance Arrangements (‘the 2021 Exposure Draft’) asked the IASB to require an entity to calculate and disclose particular effects of its supplier finance arrangements rather than to provide information that users of financial statements would then use to assess the effects. However, other stakeholders informed the IASB that users of financial statements employ various models when assessing
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