Publication of IFRS 19
On 9 May 2024, the IASB issued IFRS 19 – Subsidiaries without Public Accountability: Disclosures.
Readers will remember that this standard will:
- first, simplify the preparation of the financial statements of subsidiaries without public accountability, by allowing them to apply the accounting policies of the group when preparing their local financial statements; and
- second, reduce the disclosure requirements for these subsidiaries.
A subsidiary will be eligible if:
- it has no public accountability (i.e. it is neither listed nor a financial institution); and
- its ultimate or intermediate parent publishes consolidated financial statements that are available for public use and comply with IFRSs.
The effective date of this optional standard is 1 January 2027, but IFRS 19 can be applied as soon as it is issued, subject to adoption by local jurisdictions. At the European level, EFRAG has not yet received the European Commission’s request for endorsement advice (no information has been given at this stage regarding the endorsement of the standard).