ITFA response to IFRS exposure on SCF accounting standards

The International  Accounting Standards Board (IASB) published in November of last year its proposals, in an exposure draft, for the treatment of supply chain finance arrangements under IFRS. These proposals are an important development in the long-running, and sometimes controversial, debate over how users of supply chain finance, principally large corporates, should present these programmes in their financial statements, a subject which has drawn the critical attention of a number of rating agencies. ITFA has previously published some guidance on this subject, link here. ITFA has commented on these proposals. A copy of our letter can be found here and a copy of the IASB exposure draft here. ITFA has not commented on proposals on the same subject made in the United States which are, generally speaking, less problematic.