Publication of the finalized amendments to the FSA’s regulatory notice concerning the „designated IFRSs“ after public consultation

The FSA has recently concluded revisions to the regulatory notice regarding „designated IFRSs“ outlined in the „Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements,“ referred to as „the proposal.“ These changes followed a period of public consultation.
Under the finalized amendments, IAS issued by the IASB before 30 June 2023 have been designated as part of the Designated International Accounting Standards, as per Article 93 of the Regulation on Consolidated Financial Statements.
The key focus of these accounting standards is on Supplier Finance Arrangements, which the IASB introduced on 25 May 2023. These alterations affect IAS 7, Statement of Cash Flows, and IFRS 7, Financial Instruments: Disclosures.
Consequently, companies are now obligated to include supplementary information about supplier finance arrangements in the notes accompanying their financial statements. This additional information encompasses details such as the contractual terms of these arrangements, the extent of financial liabilities subject to them, and information regarding the liquidity risk associated with financial instruments utilized in these arrangements.
The implementation of these final amendments officially started on 31 August 2023. These changes signify a significant development in financial reporting practices, as they expand disclosure requirements for companies involved in supplier finance arrangements, aiming to enhance transparency and information availability for stakeholders.