Document ID: chunk:federal_register_of_legislation:F2024L00378:body:0:p2
Version: federal_register_of_legislation:F2024L00378
Segment Type: other
Provision Reference: 
Character Range: 3093–6277

carrying amount of the liabilities that are part of the arrangements, the carrying amounts of those liabilities for which the suppliers have already received payment from the finance providers, the range of payment due dates and the effect of non-cash changes.

     Application date
This Standard applies to annual periods beginning on or after 1 January 2024 that end on or after 30 June 2024, with earlier application permitted.

Accounting Standard AASB 2024-1
The Australian Accounting Standards Board makes Accounting Standard AASB 2024-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements: Tier 2 Disclosures under section 334 of the Corporations Act 2001.
Keith Kendall
Dated 7 March 2024 Chair – AASB

Accounting Standard AASB 2024-1
Amendments to Australian Accounting Standards – Supplier Finance Arrangements: Tier 2 Disclosures

Objective
     1                        This Standard amends AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (March 2020) to require a Tier 2 entity to disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity's liabilities, cash flows and exposure to liquidity risk.
     2                        These amendments reflect the issuance of AASB 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements, which amended AASB 107 Statement of Cash Flows (August 2015) and AASB 7 Financial Instruments: Disclosures (August 2015), to extend the disclosure requirements to Tier 2 entities.

Application
     3                        The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 1060 set out in AASB 1057 Application of Australian Accounting Standards.
     4                        This Standard applies to annual periods beginning on or after 1 January 2024 that end on or after 30 June 2024. Earlier application is permitted.

Amendments to AASB 1060
     5                        Paragraphs 119A–119C and a related heading are added.

               Supplier finance arrangements
          119A Supplier finance arrangements are characterised by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity's suppliers with early payment terms, compared to the related invoice payment due date. Supplier finance arrangements are often referred to as supply chain finance, payables finance or reverse factoring arrangements. Arrangements that are solely credit enhancements for the entity (for example, financial guarantees including letters of credit used as guarantees) or instruments used by the entity to settle directly with a supplier the amounts owed (for example, credit cards) are not supplier finance arrangements.
          119B An entity shall disclose in aggregate