MASB publishes amendments to MFRS 107 and MFRS 7 to enhance disclosures of supplier finance arrangements

The Malaysian Accounting Standards Board (MASB) has today issued Supplier Finance Arrangements (Amendments to MFRS 107 Statement of Cash Flows and MFRS 7 Financial Instruments: Disclosures).

The Amendments is word-for-word Supplier Finance Arrangements (Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures) issued by the International Accounting Standards Board (IASB). 


Amendments to MFRS 107 and MFRS 7 respond to investors’ concerns that some supplier finance arrangements – also referred to as supply chain finance, trade payables finance or reverse factoring arrangements – used by entities are not sufficiently visible, hindering investors’ analysis. 

The disclosure requirements require entities to disclose information that would enable users of financial statements to assess how supplier finance arrangements affect an entity’s operations; including the effects supplier finance arrangements have on an entity’s liability, cash flows and exposures to liquidity risk. The new disclosure requirements would also inform users of financial statements on how an entity might be affected if the arrangements were no longer available to it.

The Amendments will become effective for annual reporting periods beginning on or after 1 January 2024.

The “Notice of Issuance” can be downloaded here.


For enquiries, please contact:

Malaysian Accounting Standards Board
Unit 13A-1, Menara MBMR
1, Jalan Syed Putra
58000 Kuala Lumpur
Tel: 03-2273 3100
Fax: 03-2273 9400