In the Annex to Regulation (EU) 2023/1803, International Accounting Standard 7 Statement of Cash Flows and International Financial Reporting Standard 7 Financial Instruments: Disclosures are amended as set out in the Annex to this Regulation.
Commission Regulation (EU) 2024/1317 of 15 May 2024 amending Regulation (EU) 2023/1803 as regards International Accounting Standard 7 and International Financial Reporting Standard 7
Commission Regulation (EU) 2024/1317 of 15 May 2024 amending Regulation (EU) 2023/1803 as regards International Accounting Standard 7 and International Financial Reporting Standard 7
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards(1), and in particular Article 3(1) thereof,
Whereas:
By Commission Regulation (EU) 2023/1803(2) certain international accounting standards and interpretations that were in existence on 8 September 2022 were adopted.
On 25 May 2023, the International Accounting Standards Board issued certain amendments to International Accounting Standard 7 Statement of Cash Flows (‘IAS 7’) and International Financial Reporting Standard 7 Financial Instruments: Disclosures (‘IFRS 7’). The amendments introduced disclosure requirements about a company’s supplier finance arrangements.
These new requirements are to provide users of financial statements with information enabling them to assess the impact of supplier finance arrangements on a company’s liabilities and cash flows, and to understand the effect of supplier finance arrangements on a company’s exposure to liquidity risk and how the company might be affected if the arrangements were no longer available to it.
Following a consultation of the European financial reporting advisory group EFRAG, the Commission concludes that the amendments to IAS 7 and IFRS 7 meet the conditions for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002.
Regulation (EU) 2023/1803 should therefore be amended accordingly.
The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee,
HAS ADOPTED THIS REGULATION:
Article 1
Article 2
Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of its first financial year starting on or after 1 January 2024.
Article 3
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 15 May 2024.
For the Commission
The President
Ursula von der Leyen