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Company operating in the US under IFRS rules. Currently looking to convert some LC agreements into UPAS agreement (Usance Pay At Sight). Previously would account for this as a contingent liability -off b/s. But now since we are now using the line and deferring payment, would we now account for this as a operating activity or financing activity?
in IAS 37 - Provisions, Contingent Liabilities and Contingent Assets by

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Until you actually make use of the letter of credit for the intended business transaction, it's an off balance sheet disclosure.
by Level 3 Member (6.2k points)