Atlas Copco AB – Annual report – 31 December 2025
Industry: manufacturing
1. Information of material accounting principles, key sources of uncertainty in estimates and judgements (extract)
Financial assets and liabilities – financial instruments (extract)
Supply chain financing
The Atlas Copco Group and banks, with close relations to the Group, offer suppliers the opportunity to use a supply chain financing scheme (SCF) which allows them to be paid earlier than the invoice due date. The Group evaluates supplier arrangements against a number of indicators to assess if the payable continues to hold characteristics of a trade payable or should be classified as borrowings; these indicators include whether the payment terms exceed customary payment terms in the industry. These transactions have been recognized as either “Account payables” or “Borrowings” in the Group’s balance sheet and as “Change in operating liabilities” or change in “Borrowings” or “Repayment of borrowings” in the statement of cash flows. See note 21 for additional information.
21. Borrowings and trade payables (extract)
Terms and conditions of Supply Chain Financing
Atlas Copco in collaboration with two banks, offers a Supply Chain Financing (SCF) scheme that enables suppliers to receive payment earlier than the invoice due date. This financing arrangement is currently available only in certain entities within the Group.
¹ Non cash changes include additions and cancelations during the year which haven’t resulted in any cash flow impact.
Accounts examples 