Exposure draft proposing to amend IFRS 19
An exposure draft (available here)
IFRS 19 simplifies the financial reporting of eligible subsidiaries (meaning subsidiaries without public accountability – i.e. that are neither listed nor financial institutions – and whose ultimate or intermediate parent produces consolidated financial statements under IFRS that are available for public use) by allowing them to apply IFRS accounting standards with reduced disclosure requirements.
When drafting this standard, the IASB considered the disclosure requirements resulting from standards published as of 28 February 2021. Pending discussions on the appropriateness of further relief, the disclosure requirements arising from standards and amendments issued between 28 February 2021 and 1 May 2024 had been incorporated into IFRS 19 in their entirety.
The purpose of this consultation is therefore to ask stakeholders whether it would be appropriate to reduce the disclosure requirements arising from standards and amendments published between 28 February 2021 and 1 May 2024.
More precisely, the exposure draft proposes to reduce the disclosure requirements concerning:
• Lack of Exchangeability (amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates, issued in August 2023);
• International Tax Reform – Pillar Two (amendments to IAS 12 – Income Taxes, issued in May 2023);
• Supplier Finance Arrangements (amendments to IAS 7 – Statement of Cash Flows and IFRS 7 – Financial Instruments: Disclosures, issued in May 2023
• the financial statements (IFRS 18 – Presentation and Disclosure in Financial Statements issued in April 2024).
However, the IASB is not proposing to reduce the disclosure requirements arising from amendments relating to the classification and measurement of financial instruments (amendments to IFRS 7 – Financial Instruments: Disclosures and IFRS 9 – Financial instruments, issued in May 2024).
Finally, the exposure draft includes some thoughts on the forthcoming standard on Regulatory Assets and Regulatory Liabilities that will replace IFRS 14.
The comments period runs until 27 November 2024.