Raising the Reporting Bar for Supply Chain Finance Programmes

Paul Coles, Treasury DirectorDaniel Smith, Director of Origination - EMEA Introduced in late May, the International Accounting Standards Board's (lASB's) new disclosure requirements aim to alleviate investors' concerns that some companies' supplier finance arrangements are not sufficiently visible. More broadly, while the new requirements won't result in any significant change, such as reclassifying trade payables into bank debt, they will help demystify supply chain financing programmes. "Even though the failed programmes were just two of many thousands, the new standards are a good reminder about what could happen if supply chain finance isn't utilised for the appropriate corporate objectives."