The Standard Stance

Volume 18

The Standard Stance: Supplier Financing Arrangements - Insights on the Proposed Disclosure Requirements Under Ind AS

The      Accounting Advisory Services (AAS) team at BDO India is pleased to share 'THE STANDARD STANCE' - An expert insight into key accounting matters. Each monthly issue of the publication spotlights and discusses a key accounting matter noteworthy for organisations to stay ahead in their business journeys.
 
This issue of THE STANDARD STANCE - SUPPLIER FINANCING ARRANGEMENTS - INSIGHTS ON THE PROPOSED DISCLOSURE REQUIREMENTS UNDER IND AS analyses the proposed disclosure requirements under IND AS 7 and IND AS 107 with illustrative examples.

Supplier financing arrangements involve a third-party financial institution facilitating payments between a buyer and its suppliers. They are a working capital tool that allows businesses to optimise cash flow, improve working capital, and strengthen supplier relationships. In this edition of The Standard Stance, we explore how the proposed disclosure requirements may help assess the effects of these arrangements on liabilities and cash flows of an organisation and on its exposure to liquidity risk.

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