AASB 107 Statement of Cash Flows 44F-44H: Disclose supplier finance arrangements: terms, carrying amounts and line items, amounts already paid by finance providers, payment due date ranges and non-cash changes

What does 44F-44H require?

Where finance providers pay the entity's suppliers and the entity settles with the provider on or after the date the supplier is paid (supply chain finance, payables finance, reverse factoring), the entity must give readers enough to assess the effect on its liabilities, cash flows and liquidity risk exposure. In aggregate, and separately for arrangements with dissimilar terms, it discloses the terms and conditions (for example extended payment terms and any security or guarantees); at both the start and the end of the period the carrying amounts and balance sheet line items of the liabilities within the arrangements, the portion for which suppliers have already been paid by the provider, and the spread of due dates for paying those liabilities and comparable trade payables outside the arrangements, with explanation or stratification where ranges are wide; and the kind and effect of non-cash movements such as business combinations and exchange differences. Credit enhancements alone (guarantees, letters of credit) and instruments the entity uses to pay suppliers directly (credit cards) are outside the definition.