BC35 The 2023 Amendments require an entity to aggregate the information it provides about its supplier finance arrangements. The 2021 Exposure Draft proposed that an entity be permitted to aggregate the information disclosed about supplier finance arrangements only when the terms and conditions of those arrangements are similar. In addition, an entity would have been required to disclose additional information about its supplier finance arrangements if necessary to meet the disclosure objectives.

BC36 After considering feedback on the 2021 Exposure Draft, the IASB decided that, in most cases, aggregated information about an entity’s supplier finance arrangements will satisfy the information needs of users of financial statements. This is because supplier finance arrangements share the characteristics described in paragraph 44G of IAS 7, and it is those characteristics that give rise to the information needs of users of financial statements. Therefore, information about each individual supplier finance arrangement is not needed to provide useful information to users of financial statements. However, to avoid material information being omitted or obscured when aggregated, the 2023 Amendments require an entity to disclose:

(a) separately the terms and conditions of arrangements that have dissimilar terms and conditions. Disaggregated information-if required-enables users of financial statements to assess the different types of arrangements an entity has entered into.