Commission Regulation (EU) 2024/1317

Contents

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^note, and in particular Article 3(1) thereof,Whereas:

(1)By Commission Regulation (EU) 2023/1803^note certain international accounting standards and interpretations that were in existence on 8 September 2022 were adopted.

(2)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.

(3)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.

(4)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.

(5)Regulation (EU) 2023/1803 should therefore be amended accordingly.

(6)The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee,

HAS ADOPTED THIS REGULATION: