The supplier gets early payment and the buyer longer payment terms. Whether the liability remains a trade payable or becomes a financial liability must be assessed; IAS 7 and IFRS 7 require additional disclosures for such arrangements.
Source: TMS 7, TFRS 7 (tedarikçi finansmanı açıklamaları)
Related terms
Cash conversion cycleDays inventory outstanding plus days sales outstanding minus days payables outstanding, showing how many days cash is tied up in the operating cycle.Trade receivables and payablesAmounts receivable from the sale of goods or services, and amounts payable for purchases of goods or services, in the entity's ordinary course of business.Working capitalThe difference between current assets and current liabilities; in practice usually used as net working capital, consisting mainly of trade receivables, inventories and trade payables.BetaA coefficient measuring the sensitivity of a share's return to changes in the market return, that is, its systematic risk.Break-even pointThe sales volume or amount at which total revenue equals total cost and the business makes neither profit nor loss.Capital asset pricing model (CAPM)A model that calculates the cost of equity from the risk-free rate, beta and the market risk premium.
Last updated: November 8, 2026 · This definition is for general information only.