IASB proposes amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures
July 30, 2024
The International Accounting Standards Board (IASB) has today published an Exposure Draft proposing amendments to its newest Standard, IFRS 19 Subsidiaries without Public Accountability: Disclosures, which was issued in May 2024. The proposals would reduce disclosure requirements from new IFRS Accounting Standards and amendments issued between February 2021 and May 2024.
IFRS 19 simplifies financial reporting for eligible subsidiaries, enabling them to apply IFRS Accounting Standards with reduced disclosure requirements1. As IFRS Accounting Standards are developed and amended, IFRS 19 will be amended alongside them—always with a view to reducing disclosure requirements for eligible subsidiaries.
To ensure that IFRS 19 would be issued without delay, the IASB decided that the Standard would initially include full disclosure requirements from new Standards and amendments issued after the cut-off date of February 2021. The IASB is now consulting on whether and how to reduce these requirements with the aim that any amendments to the requirements will be effective at the same time as IFRS 19 itself.
The proposals would reduce or simplify the disclosure requirements related to:
lack of exchangeability (amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates);
international tax reform—Pillar Two Model Rules (amendments to IAS 12 Income Taxes);
supplier finance arrangements (amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures);
primary financial statements (IFRS 18 Presentation and Disclosure in Financial Statements); and
non-current liabilities with covenants (amendments to IAS 1 Presentation of Financial Statements).
The Exposure Draft also includes indicative disclosure requirements from the prospective Accounting Standard Regulatory Assets and Regulatory Liabilities and asks for feedback on whether these requirements would be practical for eligible subsidiaries.
The IASB is inviting feedback on these proposals until 27 November 2024. The IASB will analyse the feedback and make the necessary changes before finalising the amendments to IFRS 19.
[ifrs.org]
